Exemption for recycled PVC granules from cable scrap upheld where Chapter 39 classification satisfied

Recycled PVC granules manufactured in India from scrap or waste of copper wire and cable were held to satisfy the exemption condition in Serial No. 73 of Notification No. 6/2002-Central Excise because the input contained plastic insulation and the finished product was classifiable under Chapter 39. On that factual and classification basis, the materials were treated as plastic materials reprocessed from specified scrap or waste, so the exemption applied and the Revenue's demand and penalty did not survive.

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Issues: Whether recycled PVC granules manufactured in India out of scrap or waste of copper wire and cable were entitled to exemption under Serial No. 73 of Notification No. 6/2002-Central Excise dated 01.03.2002.

Analysis: The relevant exemption covered plastic materials reprocessed in India out of the scrap or waste of goods falling within the specified chapters. The materials used by the respondent were found to be copper wire and cable scrap/waste containing plastic insulation, and the resultant product was recycled PVC granules classifiable under Chapter 39. On this factual and classification basis, the condition of the notification was satisfied.

Conclusion: The respondent was entitled to the exemption, and the Revenue's demand and penalty did not survive.

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