Tariff classification of crushed acrylic scrap depends on mouldability, not plastic composition alone.

Imported crushed acrylic plastic sheet scrap was not classifiable under Item 15A(1) of the Central Excise Tariff Schedule for additional countervailing duty merely because it was plastic. The decisive test was whether the material could be moulded in the manner contemplated by that entry. Although the scrap was made of plastic, it was not comparable to resin polymers and was not capable of being moulded like goods falling within Item 15A(1). The classification was therefore rejected and the assessee succeeded.

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Issues: Whether imported crushed acrylic plastic sheet scrap was classifiable under Item No. 15A(1) of the Central Excise Tariff Schedule for the purpose of levy of additional countervailing duty of customs.

Analysis: The decisive question was whether the scrap could be treated as a plastic material falling within Item 15A(1) merely because it was made of plastic. The reasoning accepted that the material was plastic, but held that this was not enough unless it was shown to be capable of moulding in the manner contemplated by the tariff entry. Crushed acrylic scrap was found not to be comparable to resin polymers and not capable of being moulded like goods assessable under Item 15A(1).

Conclusion: The imported acrylic scrap was not classifiable under Item No. 15A(1) of the Central Excise Tariff Schedule, and the impugned orders were set aside in favour of the assessee.

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