TMI Blog2024 (3) TMI 553X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. The notification specifically provides for plastic scrap or plastic waste including waste Polyethylene Terephthalate bottles and even the minimum quantity of textile yarn used by the appellant cannot be included in the specification under the notification. The Adjudicating Authority is right in observing that the moment any other waste or primary material is used which does not fall in the description of the plastic scrap/plastic waste/PET bottles, the assessee goes out of the purview of the said notification. Considering the principle of law that a person who claims exemption or concession has to establish that he is entitled to that exemption or concession, the appellant has failed to substantiate the same. Also, if exemption is available on complying with certain conditions, the said conditions have to be complied with and as per the discussion above, it cannot be said that the appellant has complied with the mandatory conditions of the notification - the contention of the learned Counsel that the terms plastic waste in the notification is not specific but is of general nature is rejected. The wordings of the condition provided in the notification are absolutely clear and un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod (July, 2014 to December 2016). Hence, the present appeal has been filed by the appellant before this Tribunal against the confirmation of demand towards central excise duty of Rs.1,67,20,988/- along with interest and penalty. 5. Shri Jitin Singhal, Advocate appearing for the appellant has submitted that the procurement of yarn waste from the textile industry is actually a plastic waste as it contains Polyethylene Terephthalate, which has multiple uses from drinking bottles to textile. It is his contention that the appellant does not use Popcorn as raw material and it is a by-product arising during the manufacturing, which gets consumed during the manufacturing of the finished goods. In the synopsis filed, the learned Counsel has stated that the spinning waste and draw line waste of PSF plant is being agglomerated in agglomerator machine and the outcome of this process is termed as Popcorn , which is further used in the manufacturing of the PSF. According to the Counsel, Polyethylene Terephthalate can be made both into fibre and plastic and, therefore used in the production of the synthetic fibres in the textile industry and also for bottle production. He further submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Polyethylene Terephthalate bottles. Needless to say that law on the interpretation of the exemption notification is settled by the Apex Court that the exemption notification has to be construed strictly and there is no scope for adding or subtracting any word in the notification. The Constitution Bench in the case of Commissioner of Customs (Import), Mumbai Vs. Dilip Kumar and Company and Others (supra) considering the entire case law on the interpretation of exemption notification concluded that:- 41 . After thoroughly examining the various precedents some of which were cited before us and after giving our anxious consideration, we would be more than justified to conclude and also compelled to hold that every taxing statute including, charging, computation and exemption clause (at the threshold stage) should be interpreted strictly. Further, in case of ambiguity in a charging provisions, the benefit must necessarily go in favour of subject/assessee, but the same is not true for an exemption notification wherein the benefit of ambiguity must be strictly interpreted in favour of the Revenue/State. 52 . To sum up, we answer the reference holding as under - (1) Exemption notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing textile yarn waste to manufacture Popcorn , which is manufactured from different types of waste including yarn waste and is a recycled product. The Adjudicating Authority dealt in detail the manufacturing processing of the Popcorn and held as under:- 25.3 In view of the foregoing discussion, the conclusion that can be drawn is that popcorn is manufactured from mechanical and chemical processing of different types of waste viz. waste of plastic, yarn waste and textile waste and in this manufacturing process polymers are broken down resulting in a product that is the primary form of PET. Thus, the product Popcorn is a primary form of a single thermoplastic material i.e. polyethylene Terephthalate (PET). Since Popcorn does not qualify as plastic waste and scrap the benefit of the notification ibid is not admissible as the said notification allow only plastic waste and scrap as the inputs, including waste PET bottles to be used for manufacture of PSF. Textile yarn waste/ Popcorn is not permissible as input for availing concessional rate of duty under the notification ibid. Thus I find that the contention of the notice that Popcorn used to manufacture PSF is nothing but plastic wast ..... X X X X Extracts X X X X X X X X Extracts X X X X
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