TaxTMI 
TaxTMI 
TaxTMI 
2018 (9) TMI 1713
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..../2006 (Entry No.78). They also sought to classify their final product under Central Excise Tariff Heading (CETH) 3907.60 of the Central Excise Tariff Act, 1985 (CETA). Department however, took the view that said exemption notification would not be available to them and that these items should be correctly classifiable as waste of plastics / PET flakes under CETH 39159042. Proceedings were initiated by way of issue of show cause notice dt. 24.03.2010. In adjudication, the original authority vide an order dt. 14.06.2010 held that Parings of PET bottles / PET flakes cleared by the assessee have been rightly classified under CETH 39159042 of the CETA. In appeal, the Commissioner (Appeals) vide the impugned order dt. 15.11.2010 held that the g....
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.... items at Entry No.78 should very well be available to the final products. 3.2 Ld. Consultant relies upon the following case laws : (a) CCE Bombay Vs Bright Bros. Ltd. - 1996 (84) ELT 83 (Tribunal) (b) CC New Delhi Vs Bhartiya Plastic Udyog - 1999 (107) ELT 161 (Tribunal) (c) Ideal Sheet Metal Stampings & Pressings Pvt. Ltd. Vs CC Ahmedabad - 2001 (133) ELT 807 (Tri.-Mumbai) (d) CC Ahmedabad Vs Surya Exim Ltd. 2015 (323) ELT 585 (Tri.-Ahmd.) 3.3 Ld. Consultant also submits that even in case the final goods have to be considered as falling within CETH 39.15, it has to be held that no manufacture is involved in conversion of PET Bottles into Flakes. For this purpose, he relies upon the ratio of judgement of the Hon'ble Supreme Court....
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....d and washed using mechanical force and converted into, flakes' which are then cleared to other manufacturers, who convert it to powder and cleared to manufacturer of PET bottles; that the buyer of the product who converts the, flakes" to powder form is not paying Central Excise duty; that the product waste PET bottle flakes and waste PET bottles in powder form are the two stages of conversion of used and waste PET bottles into a new PET bottle for fresh usage; that since flakes are converted into PET bottles, they are inputs for such manufacturers and are classifiable under CETH 3907.60 only. 5.3 The appellants who were earlier classifying their final product, PET flakes" under CETH 3915.90 have subsequently claimed classification under C....
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....locks of irregular shape, lumps, powders (including moulding powders), granules, flakes and similar bulk forms." 5.6 It is thus evident that primary forms for the purpose of Chapter 39 are constituent goods which are, primary" in form and meant to be converted by further polymerisation or chemical synthesis into other materials of Headings 3901 to 3914. This interpretation is reinforced by Chapter Note 3 which clarifies as under: "3. Headings 3901 to 3911 apply only to goods of a kind produced by chemical synthesis, falling in the following categories : a) Liquid synthetic polyolefins of which less than 60% by volume distils at 300oC, after conversion to 1, 013 millibars when a reduced pressure distillation method is used (headings 3....
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....hich has been transformed into primary form (Heading 3901 to 3914). This being so, only when the, parings" manufactured by the respondents are converted into, primary forms" such goods will then go out of CETH 3915. 5.10 Further, respondent has all along not only been importing the, PET Bottle Waste" under classification 39159042, but also exporting the 'PET Flakes Clear, washed' under the same classification 39159042. 5.11 In view of the discussions herein above, we therefore find ourselves in agreement with the following conclusion of the original authority : "The issue to be decided is whether the Parings of PET Bottles commonly knows in trade as 'PET Flakes clear' manufactured by the M/s.SRP is classifiable under CETSH 3915.9042 or ....