2003 (3) TMI 371

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....ee is a manufacturer of PVC compound, rigid/flexible film etc. The above waste arise during manufacture of these items. About the nature of these waste products and the manufacturing process the impugned order has noted as under :- "RAW MATERIAL USED : (1)   P.V.C. Resin. (2)   Plasticizer (Liquid). (3)   Stabilizer. (4)   Lubricants. PROCESS IN BRIEF P.V.C. Resin which forms almost 95% of raw-materials for manufacturing P.V.C. Films is mixed with the above mentioned additives in suitable proportions. The mixing is done in a high speed fluidising mixer wherein the liquid contents the additives get uniformly absorbed by the Resin and other solid ingredients get uniformly dispersed ....

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....rrect setting of the die. During the adjustment of die whatever material comes out of the die will be the incidental waste in the form of lumps of the P.V.C. Compound. This is about 4 to 4.5% of P.V.C. Compound. (3)      The mother film roll removed from the winder always, has uneven edges. These edges at both the ends of the film have to be trimmed off at the time of slitting the mother roll into various sizes. This is the second stage of incurrence of wastage in the process. This is about 18 to 19% of P.V.C. Film. This finished products of the process is P.V.C. Film Rolls trimmed at both the edges and uniformly wound on a paper tube. Some customers prefer the film rolls in untrimmed form also. These films....

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....h as the items in question are specifically covered under sub-heading 3915 as they are waste, forming at different stages of manufacture. It is the submission of the assessee that Chapter Note 6(a) which deals with primary forms of plastics would not have any application to waste arising in the manufacture of articles of plastics. The learned Counsel for the assessee stressed that it is clear from the description of manufacturing process as noted in the order-in-original that PVC waste in Lumps occurs in the manufacturing process of films and it is not plastic manufactured in primary form. With regard to PVC film waste, the learned Counsel has submitted that the waste in question being in the nature of small pieces, arising during edge cutt....