TaxTMI 
TaxTMI 
2013 (9) TMI 1005
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....firmed against the appellant M/s Raymond Ltd. on the soft waste generated during the process of conversion of Polyester Tow to Polyester Tops. 2. The learned Counsel for the appellant submits that as per Chapter Note 3 of Chapter 55 state as follows :- "3. Sub-heading Nos. 5503.11, 5503.12, 5503.19 and 5503.20 apply only to waste arising in, or in relation to, the manufacture of man-made staple fibres." Further, as per Section Note 2(D) of Section XI, it is stated as follows :- "(D) Throughout this Schedule, 'man-made fibres' means staple fibres and filaments of organic polymers produced by manufacturing process, either: - (i) By polymerization of organic monomers, such as polyamides, p....
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....rocess of conversion of tow into tops and, therefore, it has to be held that waste has arisen in the manufacture of polyester fibre and hence, the product is rightly classifiable under CETH 5503.19. He also relies on the decision in the appellant's own case reported in 2005 (189) E.L.T. 345 (Tri.-Mum.), wherein an identical issue arose and the learned Member (Technical) held that soft waste arising during the process of conversion of tow into tops is classifiable under CETH 5503.19, whereas the learned Member (Judicial) held that demand is time-barred. Therefore, the matter was referred to third Member and third Member also held that the demand is time-barred. Therefore, the question of classification was not gone into by the third Member e....
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.... which is called hard waste. Sub-heading 5503.11, 5503.12, 5503.19 and 5503.20 covers waste which arises in the manufacture of man-made fibres. 4.2 Chapter Note 3 of Chapter 55 makes it clear that waste referred to under Headings 5503.11, 5503.12, 5503.19 and 5503.20 would apply only to waste arising in, or in relation to, the manufacture of man-made staple fibres. It is not in dispute that top, which is manufactured by the appellant in the factory for captive consumption is man-made fibres. In fact the raw fibre, tow and tops are of various forms of man-made staple fibres only. 4.3 Fair Child's Dictionary of Textiles, which is a well known authority on textiles, states that "Tow' and 'Top" are nothing but fibres. The said d....
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.... yarn and, therefore, it was held that waste had arisen in the manufacture of yarn and such waste cannot come under the purview of soft waste. Since the facts in the present case are different, the ratio of these decisions would not apply. 4.5 The appellant also placed reliance on the clarification issued by the C.B.E. & C. regarding classification of waste of polyester staple fibre and tow vide Circular No. 20/MMSF/89CX. 1, dated 18-12-1989. In the said Circular, it has been clarified that "wastes of man-made fibres include fibre wastes (soft wastes) such as relatively long fibres obtained as waste during the formation and processing of filaments, short fibres obtained as waste from the carding, combing and other processes preparat....