Exemption for plastic waste and scrap fails where the factory also manufactures other excisable goods, defeating refund entitlement.

Notification No. 89/95-C.E. denied exemption for waste, sparing and scrap cleared from a factory where excisable goods other than exempted goods were also manufactured. Because the factory admittedly produced both excisable and exempted goods, the proviso to the notification was not satisfied, so the plastic waste and scrap did not qualify for exemption. Duty paid on such clearances was therefore treated as correctly paid, and no refund was admissible.

---

---

Issues: Whether the appellants were entitled to the benefit of Notification No. 89/95-C.E. dated 18-5-95 in respect of plastic waste and scrap cleared from a factory where both excisable and exempted goods were manufactured, and consequently whether the duty paid was refundable.

Analysis: The exemption notification contained a proviso excluding waste, sparing and scrap cleared from a factory in which any other excisable goods other than exempted goods were also manufactured. On the admitted facts, the factory manufactured both excisable and exempted goods. The condition attached to the exemption was therefore not satisfied, with the result that the duty paid on the plastic waste and scrap was correctly paid and no refund could arise.

Conclusion: The appellants were not entitled to the exemption and the refund claim was not admissible.

---