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TMI Blog1987 (4) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... om are respondents, imported Acrylic Plastic Scrap after 1-3-1982 when Tariff item 15A-CET was amended and before 22-7-1986 (when a new Central Excise Tariff was introduced). The Customs authorities initially charged additional duty of customs classifying the goods for that purpose under item 15A(1) of the Central Excise Tariff. The importers appealed to the Collector of Customs (Appeals). In some cases the assessment was confirmed (the importers are appellants before us) and in other cases the Collector allowed the appeals and ordered additional duty to be charged under item 68 of CET (The revenue filed appeals in such cases). The question before us is, therefore, whether the imported goods 'Acrylic Plastic Scrap' are liable to countervail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sogani argued that the imported goods were wastes and scraps of plates and sheets which do not fall under sub-item (1) of item 15A-CET as a consequence of which explanation 3(c) to the item does not cover the imported goods. Shri Sogani further emphasised that it is only resins which are covered by sub-item (1) of item 15A, and that scrap can arise at resin stage also and it is only such scrap which will be liable to duty under 15A(1), in terms of Explanation III. 5. Shri T.V. Krishnamarthy, Consultant for M/s Plast Impex adopted Shri Sogani's arguments and added that the Asstt. Collector and the Collector (Appeals) confused between plastic material and material of plastic which are two different things. He emphasised that scrap in questi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TERIALS AND ARTICLES SPECIFIED BELOW:- (1) Condensation, polycondensation and polyaddition products, whether or not modified or polymerised, and whether or not linear (for example, pheno-plasts, aminoplasts, alkyds, polyallyl esters and other unsaturated polyesters, silicones); polymerisation and co-polymerisation products (for example, polyethylene, polytetrahaloe-thylenes, polyisobutylene, polystyrene, polyvinyl chloride, polyvinyl acetate, polyvinyl chloroacetate and other polyvinyl derivatives, polyacrylic and polymethacrylic derivatives coumaroneindene resins); regenerated cellulose; cellulose nitrate, cellulose acetate and other cellulose esters, cellulose ethers and other chemicals derivatives of cellulose, plasticised or not (for e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... polymerisation products. Explanation III:- Sub-item (1) is to be taken to apply to materials in the following forms only:- (a) liquid or pasty (including emulsions, dispersions and solutions); (b) blocks, lumps, powders (including moulding powders), granules, flakes and similar bulk forms; (c) waste and scrap." 9. There is no dispute that the imported goods are Acrylic plastic scrap. There is also no dispute that these result from the waste and scrap of plates and sheets. On examination of Tariff it is seen that plates and sheets do not fall under sub-item (1) of item 15A. On careful reading of explanation III, we note that the word "only" occurring at the opening sentence thereof has a lot of significance. This word restricted the sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under sub-item (2) and wastes and scraps will not come into this sub-item. (The Customs House did not dispute the goods were scraps). The note about waste and scrap explains only sub-item (1). Obviously, therefore, when goods are in the form of wastes and scraps, they do not fall in sub-item (2), otherwise the explanatory note would not have confined itself only to sub-item (1)". - 10. A similar view was taken in Pearl Plastics Manufacturing Co., Jamnagar v. Collector of Customs, Bombay (1984 ECR 2550 (CEGAT). 11. Reference was made on behalf of importers to Chapter Note 3 (e) of Chapter 39. In this context we referred to the following part of the Tribunal's order where again the same question about the classification of Acrylic crushe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artment. The Department's representative instead relied on the earlier Tribunal Order No. 222-229/1983-C. On perusal of this Order, we find that it related to cellulose acetate scrap and not to acrylic scrap. The goods being different in that case and the one before us now; no reliance could be placed on the earlier Order unless it was shown that properties of cellulose acetate scrap and acrylic scrap were identical which has not been done. Since the appellants' contention that acrylic scrap did not possess plasticity remains uncontroverted, we agree with the earlier Bench Order at 1983 (12) E.L.T. 845 that acrylic scrap could not be considered a plastic material". 12. Also relevant is the extract from the Order in M/s. Mysore Industrial P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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