TMI Blog2024 (4) TMI 955X X X X Extracts X X X X X X X X Extracts X X X X ..... ch is before the end of six years of the Assessment Year 2011-12, and hence the reassessment order passed under Section 29(4) of the Act was done within limitation, and this aspect has been affirmed by the Tribunal, and the Appeals, qua this ground, has been rightly dismissed. Whether Nylon Chips manufactured by the appellant are covered by Entry 83 of Schedule-(II)(B) of the Act? - HELD THAT:- The appellant-department have themselves accepted that, with respect to the Plastic Granules, when they are put into procedure by adding fillers and additives, the strength of the plastic becomes better. Further, as per the opinion given by the British Plastics Federation, and Central Institute of Plastics Engineering Technology (CIPET), Nylon refers to a group of Plastics known as Polyamide, and there is no change in the original material (raw material) in this manufacturing process of Nylon-6. Hence, the use of raw material, i.e. Plastic Granules to produce Nylon Chips will not alter the character of Nylon Chips, being a Plastic, and under the British Plastics Federation, Nylon is considered under the Plastics group - There is no substantial question of law, which requires to be considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question before the Tribunal was, whether re-assessment, under Section 29(4) of the Act could be made on the change of opinion, especially keeping in view that the same records had already been scrutinized by the Assessing Authority. The main argument of the respondent before the Tribunal was that, by the Original Order, the department had accepted that Nylon Chips were plastic granules. It had already formed an opinion on the nature of the product, and accordingly levied tax, and subsequently, the department changed its stand/ view on the nature of product, and accordingly higher rate of tax was sought to be applied. Section 29(1)(c) of the Act applies to cases, where department has applied the wrong rate of tax to the sale of a product, and desires to apply the correct rate of tax. The opinion of the department, on the nature of the product, remains the same. 5. In the present case, the department has taken a different view by changing the nature of the product, and not on account of wrong application of rates. Re-assessment, in such type of situation, is prohibited. The assessment order was a clear change of opinion, and was not under Section 29(1)(c). 6. The other ground taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tured by the respondent are plastics . Copy of this certificate is annexed as Annexure 17. The final and the end product of the respondent s process of manufacture is a plastic polymer itself. The photographs of the raw material are placed on record as Annexure 19. The primary form of polymer is not as stable, or suitable for commercial use. Therefore, to improve upon its properties, the plastic granules are subjected to the process of compounding. The respondent adds numerous chemicals and other such compounds, which improve the characteristics of these products, which renders them viable for commercial use. These chemicals and compounds include product like Fiber Glass, which improves the tensile strength of the product. Other products include pigments, which adds colour to these products etc. Thus, the nature of the product remains the same i.e. in the form of plastic granules. 10. The Tribunal, thereafter, referred to Entry 83 of Schedule II(B) of the Act, which reads as under : 83. Plastic granules, plastic powder and master batches 5% Schedule-II(B)-83 11. The Tribunal proceeded to examine the dispute on two points : (i) Whether the assessment order, which has been passed und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are covered by Entry 83 of Schedule-(II)(B) of the Act, the Tribunal had proceeded to examine the definition of Plastics considered in the judgment of the Hon ble Supreme Court in Chemicals and Fibers of India Ltd. v. Union of India, AIR 1997 SC 558. The Tribunal, in paragraph no. 10 of its order, considered in detail the various definition of Plastics . As considered in the case of Chemicals and Fibers of India Ltd. (supra), the definition of Plastic is given in Encyclopedia Britannica, Volume 18, Books Polymers and Resin 1, Hawley s Condensed Chemical Dictionary (13th Edition), Webster s Third New International Dictionary. With respect to the definition of Granules , it is stated to be a piece of 2 to 4 millimeters, in which the shape of pebble, on the manufacture of any plastic product, is said to be called Plastic Granules. Nylon is considered by the British Plastics Federation to be a group of plastics in the polyamides and is believed to be used in the manufacture of films and fibres. The work related to the manufacture of plastic polymers is done by them, and the photographs show that they are Plastic Granules only. Plastic is the Granules and the primary form of Raw Polymer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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