TaxTMI 
TaxTMI 
1995 (10) TMI 94
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....d Customs under Section 129D(1) of the Customs Act. The Tribunal set aside some of the findings of the Collector and consequently set aside the impugned order and remanded the matter for fresh consideration and disposal. The respondents herein challenged the order of the Tribunal before the Supreme Court. The Supreme Court set aside the order of the Tribunal on the ground that remand was made after recording what appear to be definite findings and directed the Tribunal to hear the matter afresh and decide the appeal and cross objection on merits instead of remanding the matter to Collector. The cross objections filed by the respondents are really not cross objections against the order passed by the Collector but are objections filed to the ....
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.... entitled to import under the scheme, namely Virgin HDPE Granules, while actually the goods were manufactured not from such prime quality HDPE granules but from recycled plastic scrap or waste HDPE material and hence the export must be as deemed to be banned under clause 3 of Export Trade Control Order No. 1/88-ETC. There was violation of the provisions of the scheme requiring disclosure in the application for DEEC licence of the particulars relating to the supportive manufacturers and valuation was deliberately exaggerated to secure higher import entitlement. Respondents submitted a reply consequent to rebuttle of these aspects. Respondents contended that HDPE Granules were used in the manufacture and no recycled waste HDPE was used, that ....
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....is not at all helpful to the Department but is helpful to the respondent. Polyethylene is dealt with at page 51 of the 5th edition of Plastics Engineering Handbook of the Society of the Plastics Industry edited by Michael L. Berins. It is seen that Polyethylene is classified by density into three categories namely Ultra or very low density category with specific gravity of 0.880 to 0.915 gms. per cubic cm., low density category with specific gravity of 0.910 to 0.925 gms. per cubic cm., medium density category with specific gravity of 0.926 to 0.940 gms. per cubic cm. and high density category with specific gravity of 0.941 to 0.965 gms. per cubic cm. Specific gravity relating to the various samples taken from the consignment has been calcu....
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....terial, the product was not 100% HDPE but was a blend of HDPE with polypropylene or of copolymer of polyethylene with polypropylene. This would mean that there was admixture of a small quantity of polypropylene with polyethylene or monopolymers used were subject to polymerization. It is worthwhile to notice that pure HDPE will contain polyethylene and not polypropylene. There was a small percentage of inorganic compound referable to pigments or stabilizers used during processes. Professor Pandya was summoned before the Collector and cross-examined by both sides. He stated that the tests conducted by him confirmed that predominently the main component of goods were of prime quality. He was asked if the use of masterbatch would alter the comp....
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.... finished goods, it will not cease to be prime quality product by mere presence of a small percentage of polypropylene material or other materials which had to be introduced either in the process of pigmentation or otherwise. This is also clear from the policy underlying the Customs Tariff Chapter 39 of the Tariff dealing with plastics and articles. Note 4 is as follows :- "4. For the purpose of this Chapter, except where the context otherwise requires, copolymers (including co-polycondensates, co-polyaddition products, block copolymers and graft copolymers) and polymer blends are to be classified in the heading covering polymers of that comonomer which predominates by weight over every other single comonomer, comonomers whose polymers f....
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....that these products were made not out of HDPE granules or powders. For these reasons, the finding of the Customs Collector holding that the deemed bar against the export cannot be invoked is sustainable. 10. The last contention is that in the application in connection with DEEC Book, respondents declared the name of M/s. Associated Plastic Industries as the supporting manufacturer but the finished products were not manufactured by that concern and were actually manufactured by two other concerns, Hindustan Synthetics and Shreeji Polypropylene Industries and this constitutes violation of condition of the licences. The advance licences were obtained during the period 30-10-1992 to 15-1-1993 under the 1992 Scheme. We notice that under ....