AI Drafter 
TaxTMI 
TaxTMI 
2019 (11) TMI 429
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.... manufacture of Recycle Polyester Staple Fiber through recycling route falling under chapter sub heading 55032000 of the CETA, 1985. They were using Plastic Scrap or Plastic Waste including waste polyethelene terephthalate bottles for manufacture. They were purchasing Pet flakes and yarn waste for manufacture of Popcorn which was manufactured in their own factory. They were availing exemption from duty on clearance of their finished goods under serial No. 70 A of Notification No. 1/2011- CE for the period October,2015 to June,2017. W.e.f 11.07.2014 they availed exemption under notification No. 1/2011 - CE dt. 01.03.2011 by paying duty @ 2%. Further the manufacturer of same product has also option to pay duty @6% with Cenvat Credit as per se....
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....oposed was confirmed by the adjudicating authority. Aggrieved by the impugned order, the Appellant has filed present appeal. 2. Shri Willingdon Christian, Learned Counsel, appearing for the Appellant submits that Appellants are using inputs consisting of 95% of the Plastic Scrap and Plastic Waste including waste polyethylene terephthalate bottles and therefore the conditions of notification No. 1/2011 - CE as amended are fulfilled. He relied upon statement showing year wise quantity/ value of waste Pet Bottles and Polyster Yarn waste used as raw materials for manufacture of Polyster Staple fiber. He submits that Popcorn is nothing but Polyster lump waste or plastic resin scrap. While making Polyster Staple Fiber or Filament yarn the wast....
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....ered as recycled PET material. That white popcorn and waste PET flake do not meet the properties of available virgin PET raw material. Hence Popcorn produced using waste PET Yarn can be considered as recycled PET material. He also relies upon certificate issued by Man Made Textile Research Association, Surat that "Polyster Popcorn"cannot be termed as waste of manmade fiber but it should be termed as "raw material made from textile polymer waste and can be used alongwith PET flakes to manufacture polysterfibre". That the goods are Polyethylene terephthalate. He also relies upon certificate issued by IIT, kharagpur that Popcorn is a waste plastic. He submits that the above certificates cannot be ignored as per Tribunal's findings in case of S....
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....ng claimed by the Appellant on the ground that they were using plastic waste in manufacture of Polyster Staple Fibre. The Notification provided exemption to the finished goods of Chapter 54 or 55 and the description of such finished goods was "Polyster Staple Fiber or Polyster filament yarn manufactured from plastic scrap or plastic waste including waste polyethylene terephthalate bottles falling under chapter 54 or 55". We find that the appellant apart from plastic waste were procuring Yarn waste ( White Soft, White Wairy, Black Wairyetc) falling under chapter sub heading 55051090 from JBF Industries Ltd. Silvassa, FDY Soft Yarn Waste/ POY Wairy Yarn Waste falling under chapter sub heading 55051090 from M/s Shublakshmi Polyster Ltd. Dahej ....
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....upon the judgments in case of Eagle Flask Industries 2004 (171) ELT 296 (SC), Bombay Dyeing Mfg. Co. Ltd. 2007 (215) ELT 3 (SC) and tribunal order in case of Sports & Leisure Apparel Ltd. 2011 (271) ELT 529. 5. Having perused the impugned order we find that the subject exemption is available to finished goods if the same are manufactured by plastic waste. We find that the Appellant has brought yarn waste and converted the same into popcorn. We find that what has been tested by the Man Made Textile Research Association is Polyster Popcorn and even the CIPET report is about PET waste. The IIT report is also about Popcorn considering it to be plastic waste. However the facts remains that Yarn waste was brought by the Appellant and converted....