9911796707
TMI Blog1991 (1) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... process of recycling. 2. The appellants manufacture among other goods, nylon yarn and from the nylon polymer waste, recover caprolactum by depolymerisation. Exemption was granted to such Caprolactum vide Notification 18/84 dated 1-3-1984 and Notification 36/85 dated 17-3-1985. 3. The order challenged in the appeal held that depolymerisation process is different from recycling process and therefore the caprolactum recovered by depolymerising nylon polymer waste is not entitled to the benefit of the exemption notifications and levied duty of Rs. 20,78,601.30 and imposed a penalty of Rs. 5 lakhs. 4. We have heard Shri R. Santhanam for the appellant and Smt. Zutshi for the respondent. 5. The first contention put forth by the appellants is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling would amount to double taxation of the same goods. 6. Shri R. Santhanam takes us through the annexures to the show cause notice relating to quantity of waste and quantity of recovered caprolactum and argues that it is impossible to tally and co-relate these figures. He also argues that the basis of price fixation for caprolactum at Rs. 29,000/- per metric tonne is erroneous as this price is the sale price of Gujarat State Fertiliser Corporation which is not the price at which the appellants imported the goods. Shri Santhanam draws our attention to the definition of "Polymerisation" and "depolymerisation" in Words and Phrases Permanent Edition Vol. 12 and Vol. 33. Regarding the charge of non-filing of ground plan, he submits that it wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sale, thus establishing marketability. She next refers to p. 505 of Vol. 10 of the Encyclopaedia of Polymer Science and Technology regarding polymerisation of caprolactum. She relies upon Order No. 309/83-C dated 12-10-1983 [1983 (14) E.L.T. 248] Nirlon Synthetics v. C.C.E. to show that G.S.F.C. manufactured caprolactum as early as in 1978. She submits that the existence of the depolymerisation plant was not disclosed to the Department and no details were available to enable the Department to apportion the quantity of caprolactum recovered by recycling of nylon polymer waste. According to her, the appellants have not discharged the burden of proof of eligibility for the benefit of the exemption under Notification 36/85. 8. The learned SD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Santhanam refers to a decision of this Tribunal in the case Jagatjit Cotton Textile Mills Ltd. v. C.C.E. [1990 (50) E.L.T. 379 (Tri.) = 1990 (16) ETR 172] wherein it has been held that recovery of caprolactum from nylon polymer waste does not amount to manufacture and hence caprolactum recovered by the process of depolymerisation is not excisable under Tariff Item 14AA. He files the classification lists effective from 1-3-1987 and 14-8-1987 as well as the replies to the show cause notice. He submits that the ground plan showing the depolymerisation plant was filed in May 1986 and approved in June 1986 and therefore, the Collector, at the time of passing the order in December, 1987, was not correct in stating that the existence of the depoly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cord by the Department to show that the goods were either sold or marketable as such and in the light of the certificate issued by the Gujarat State Fertiliser Corporation who is the sole manufacturer of caprolactum in India to show that caprolactum in molten form is not marketable. In this case also, the test of marketability which is essential for determining excisability has not been satisfied. Even though the appellants have not produced a similar certificate, the certificate issued by the GSFC although to another manufacturer would hold good for the appellants herein also as GSFC is the only manufacturer of caprolactum in India. We are of the view that the process of depolymerisation of nylon polymer waste to obtain caprolactum amounts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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