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2019 (11) TMI 429 - AT - Central ExciseBenefit of exemption - Valuation - manufacture of Recycle Polyester Staple Fiber through recycling route - benefit of serial No. 70 A of Notification No. 1/2011- CE - Appellant submits that Appellants are using inputs consisting of 95% of the Plastic Scrap and Plastic Waste including waste polyethylene terephthalate bottles and therefore the conditions of notification No. 1/2011 – CE as amended are fulfilled - HELD THAT:- The exemption under notification No. 1/2011- CE dt. 01.03.2011 and other analogus notification during the subsequent period were being claimed by the Appellant on the ground that they were using plastic waste in manufacture of Polyster Staple Fibre. The Notification provided exemption to the finished goods of Chapter 54 or 55 and the description of such finished goods was “Polyster Staple Fiber or Polyster filament yarn manufactured from plastic scrap or plastic waste including waste polyethylene terephthalate bottles falling under chapter 54 or 55”. The Appellant’s contention is that Popcorn so produced is plastic waste and used in production of PSF and hence the same being manufactured from Plastic waste is eligible for exemption. They have also sought reliance upon and interpreted the report of CIPET, IIT Kharagpur etc to canvass their point that the popcorn should be considered as plastic waste. The subject exemption is available to finished goods if the same are manufactured by plastic waste. We find that the Appellant has brought yarn waste and converted the same into popcorn. What has been tested by the Man Made Textile Research Association is Polyster Popcorn and even the CIPET report is about PET waste. The IIT report is also about Popcorn considering it to be plastic waste. However the facts remains that Yarn waste was brought by the Appellant and converted into Popcorn. It is appropriate to remand the case back to the adjudicating authority to decide the case afresh by taking into consideration the contentions of the Appellant afresh viz. the reports of various institutes relied upon by the Appellant and also to consider the case that the small use of popcorn from yarn waste would not debar the Appellant from exemption. The percentage of small quantity of yarn waste as claimed by the appellant was not ascertained, which is important to draw a conclusion for eligibility of exemption - appeal allowed by way of remand.
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