Tariff classification of HDPE tape waste barred exemption under Notification No. 53/87, leaving the claim inadmissible.

Waste arising from the manufacture of HDPE tapes was held classifiable with the tapes under Chapter 39 of the Central Excise Tariff Act, 1985, following the later authoritative classification relied on by the Tribunal. Because the goods and their waste were outside Chapter 54, the exemption under Notification No. 53/87, which applied to Chapter 54 goods, could not be claimed. The Tribunal therefore rejected the exemption claim and the appeal failed.

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Issues: Whether the waste arising in the manufacture of HDPE tapes was classifiable so as to qualify for exemption under Notification No. 53/87 dated 1-3-1987.

Analysis: The claim for exemption depended on the tariff classification of the waste from HDPE tapes. The earlier view that the waste could fall under Chapter Heading 5401.10 or 5401.90 was displaced by the later authoritative classification referred to by the Tribunal, under which HDPE tapes and the waste arising therefrom were held classifiable under Chapter 39 of the Central Excise Tariff Act, 1985. Once the goods and their waste were outside Chapter 54, the exemption notification relied upon for Chapter 54 goods could not be applied.

Conclusion: The exemption under Notification No. 53/87 was not admissible, and the appeal failed.

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