TMI Blog2018 (9) TMI 1713X X X X Extracts X X X X X X X X Extracts X X X X ..... 01 to 3914. Discernably, the appellants are not doing any chemical synthesis or polymerization processes on the PET bottles used by them as raw material. On the other hand, the process involves only putting the used PET bottles into a crusher which makes them small pieces and subjecting the resultant goods to washing and packing after which they are cleared from the factory. Though the appellant has argued that they are manufacturing flakes , but, what is being manufactured is only parings of PET bottles. True, these parings eventually get converted into new PET bottles, however that will not make the final product of the appellant eligible for classification as primary form of plastic . The flakes which are included as primary form in Note 6 of Chapter 39 will surely have to be a primary grade material . This is certainly not the case here. Appeal allowed - decided in favor of Revenue. - E/82/2011 And E/CO/13/2011 - Final Order No. 42464/2018 - Dated:- 25-9-2018 - Shri Madhu Mohan Damodhar, Member (Technical) And Shri P. Dinesha, Member (Judicial) For the Appellant : Shri S. Govindarajan, AC (AR) For the Shri R.R. Padmanabhan, Consultant ORDE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thermoplastic material and hence wastes are converted into flakes which are primary forms and hence benefit of Notification No.4/2006-CE for items at Entry No.78 should very well be available to the final products. 3.2 Ld. Consultant relies upon the following case laws : (a) CCE Bombay Vs Bright Bros. Ltd. 1996 (84) ELT 83 (Tribunal) (b) CC New Delhi Vs Bhartiya Plastic Udyog 1999 (107) ELT 161 (Tribunal) (c) Ideal Sheet Metal Stampings Pressings Pvt. Ltd. Vs CC Ahmedabad - 2001 (133) ELT 807 (Tri.-Mumbai) (d) CC Ahmedabad Vs Surya Exim Ltd. 2015 (323) ELT 585 (Tri.-Ahmd.) 3.3 Ld. Consultant also submits that even in case the final goods have to be considered as falling within CETH 39.15, it has to be held that no manufacture is involved in conversion of PET Bottles into Flakes. For this purpose, he relies upon the ratio of judgement of the Hon ble Supreme Court in the case of Crane Betel Nut Powder Works Vs CC CCE Tirupathi 2007 (210) ELT 171 (SC). 4. Heard both sides and have gone through the facts. 5.1 We find that the main bone of contention in this case concerns the eligibility of the PET flakes, manufactured by the appellants for exemption u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.4 The two contending tariff headings are reproduced as under : Heading No. Sub-Heading No. Description of Goods 1 2 3 PRIMARY FORMS 39.07 Polyacetals, other polyethers and epoxide resins, in primary forms, polycarbonates, alkyd resins, polyallyl esters and other polyesters, in primary forms 3907.10 Pollyacetals 3907.20 3907.30 3907.40 3907.50 3907.60 3907.70 3907.80 3907.91 3907.99 ther polyether Epoxide resins Polycarbonates Alkyd resins Polyethylene terephthalate Diallylphthalate resins including moleic resins and fumeric resins Polybutylene terephthalate other polyesters : Unsaturated Other II. WASTE, PARINGS AND SCRAP; SEMI-MANUFACTUTRES ARTICLES 39.15 Waste, parings and scrap, of plastics. 3915.10 3915 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as, primary form in Note 6 of Chapter 39 will surely have to be a primary grade material . This is certainly not the case here. 5.8 In the first place, even as per the respondent s own admission the buyer of their products only convert them into primary form namely, powder form and hence not paying Central Excise duty. 5.9 Secondly, while Chapter Note 7 does clarify that Heading 3915 does not apply to inter alia, parings of a single thermoplastic material, that is only applicable for such material which has been transformed into primary form (Heading 3901 to 3914). This being so, only when the, parings manufactured by the respondents are converted into, primary forms such goods will then go out of CETH 3915. 5.10 Further, respondent has all along not only been importing the, PET Bottle Waste under classification 39159042, but also exporting the PET Flakes Clear, washed under the same classification 39159042. 5.11 In view of the discussions herein above, we therefore find ourselves in agreement with the following conclusion of the original authority : The issue to be decided is whether the Parings of PET Bottles commonly knows in trade as PET Flakes clear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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