TaxTMI 
TaxTMI 
1999 (8) TMI 276
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....ub-heading 3915.90 and eligible to benefit of Notification No. 53/88-C.E., dated 1-3-1988 and 14/92-C.E., dated 1-3-1992. 2. Briefly stated the facts are that the appellants manufacture Polyester Polymer Chips by the process of esterification of Purified Terephthalic Acid (PTA)s and Mono Ethylene Glycol (MEG). After the manufacture, the polyester chips from silo are fed Pneumatically to Chips Bagging silo where chips are bagged by semi-automatic bagging machine. There is some spillage during the bagging operation and these are collected as sweeping. Further, when the bagged polyester chips are fed into the filament yarn plant for manufacture of polyester filament yarn, some chips, not accepted by the hopper, are collected separately. ....
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.... and the same are treated as sweeping waste; that chips stored in bags have small pieces/any powdery form or lump form which are removed by passing through a classifier and such unusable contents are collected as waste; that chips waste, being generated in the manufacture of chips or polyester filament yarn is classifiable under the heading of waste, pairing and scrap of plastic under 3915.90; that the classification lists filed by them had been approved by the Department. The learned Sr. Counsel, further, submitted that the representative sample in one bag was taken out from different bags of polyester chips; that one sample packet was also given to them; that as no test reports of the sample have been given to them, they got the sample, g....
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....stics from the appellants and sold the entire quantity to M/s. Western India Silk Industries, Bombay; that Arvind Kumar Choudhary, partner of Western India Silk Industries, in his statement dated 23-8-1994 confirmed to have received the polyester chip waste from Sheelendra Textiles. He also stated that the entire consignment was sold to M/s. Indian Organic Chemicals Ltd., Bombay (IOCL). The learned Sr. Counsel mentioned that the statement of Dr. Wagle, General Manager of IOCL is confined to original invoices of M/s. WISI Synthetics Pvt. Ltd. while Sheelendra Textiles had not sold appellants' waste to this party; that IOCL had clearly stated that they received Polyester chips (repacked) and Polyester chips waste (repacked), the fact remains ....
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....submitted that there was no mention of inferior grade of chips in the classification list; these were mentioned as waste only and as such no investigation at that stage was called for. 6. In reply the learned Sr. Counsel emphasised that the Department should have got the samples tested. He queried as to why the samples were drawn if these were not to be tested. He finally mentioned that under Notification No. 14/92 (Serial. No. 7), the Chips were exempted from payment of duty if used for making polyester staple fibre and the considerable amount of duty will be reduced. 7. We have considered the submissions of both the sides. We observe that the admitted undisputed fact in the present matter is that the impugned goods were (1) co....
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....iversal Cables Ltd. v. U.O.I., 1977 (1) E.L.T. (J 92) wherein it was held that "It is true that good quality properzi. rods and defectives are both taxable under Entry 27 of the first Schedule but their assessable value has to be determined under Section 4". The Collector has also mentioned in the impugned order that show cause notice never alleged that the goods in question were 'prime' quality chips; the show cause notice only alleged that the goods cleared were chips and not waste, pairings and scrap. In respect of suppression of fact, Collector has given his findings to the effect that none of the documents, namely, classification list, price list, purchase orders and correspondence with range officers, mentioned the fact that the goods....