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TMI Blog2016 (3) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal hearing. So, we take up the appeal hearing. 2. After hearing both the sides and on perusal of the records, we find that the Appellant were engaged in the manufacture of Polyester Staple Fibre (PSF) classifiable under Sub-heading No.55032000 and Polyester Oriented Yarn (POY) classifiable under Sub-heading No.54024600 and PSF waste and POY waste classifiable under Sub -heading No.55051090 of the Schedule to the Central Excise Tariff Act, 1985. The Adjudicating authority confirmed the demand of duty alongwith interest and imposed penalties on the Appellant for the period from April 2013 to December 2013, denying the benefit of exemption under Notification No.12/2012-CE, dt.17.03.2012 as amended on POY and Notification No.89/95-CE, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amendment it is evident that the impugned demand pertaining to the period 29th June 2010 to 16th March 2012 does not survive as the rate of duty on polyester staple fibre obtained from plastic scrap/waste including waste of PET bottles has been made Nil. The impugned goods were exempted with effect from 17.3.2012 vide Notification No. 12/2012-CE dated 17.3.2012. As regards the period from April 2009 to 28th June 2010, we find that in the case of CCE, Kanpur Vs. G.P.L. Polyfils Limited - [2005 (183) ELT 27 (Tri.)], CESTAT held as under: "4. Chapter 54 of the Tariff, relates to man-made Filaments and its Chapter note I defines man-made fibres, as under:- "Throughout the First Schedule, the term man-made fibres mean staple fibres and filam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion dated 30.9.2011 in the CWO No. 5454/2010. There is no doubt that the Tribunal's decision have precedential value. It is also seen that the adjudicating authority while not following the said judgement has not quite distinguished the same and such an act (of not following the said order) is not in conformity with the requirement of judicial discipline inasmuch as the distiguishment has to be rational, logical and substantive enough to take away the precedential value of the judgement and the adjudicating authoritys attempt at distinguishing the CESTAT order falls abysmally short of that requirement. 6. In this regard, it is not out of context to quote Para 4 of the DO letter F.No. 334/15/2014-TRU dated 10.7.2014: "4. Excise du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entioned in Section 110 of the Finance Act, 2014, which retrospectively exempted the said goods. Therefore, the entire period is covered in the demand show cause notices, either because the duty was not leviable on PSF and POY manufactured by the appellants or the same were exempted under retrospective exemption or by introducing entry No. 172A in Notification No.12/2012-CE dated 17.03.2012. Due to the corrective action taken by Revenue, it is held that there was no intention to charge duty on impugned PSF and POY for the period involved in these appeals. 6. So far as the chargeability of duty on waste and scrap in the manufacture of PSF and POY is concerned, the appellant has relied upon exemption Notification No. 89/95-CE dated 18.5.199 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue in detail. In this context, the learned Advocate on behalf of the Appellant drew the attention of the Bench to the report of Department and Scientific Industrial Research (DSIR) as under:- "01. PRODUCT INTRODUCTION: 0.1.1 Polyester filament yarn (PFY) is a long chain of synthetic polymer composed of an ester of a substituted aromatic carboxylic acid such as terephthalic acid. Polyester filament yarns are manufactured in a wide range of deniers and properties to suit virtually all textile requirements. 0.1.2 Polyester filament yarns are manufactured either from molten polymer or polyethylene terephthalic acid (PET) chips by melt spinning process. In this process, molten polymer from a manifold is metered through various spinnerette ..... X X X X Extracts X X X X X X X X Extracts X X X X
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