TaxTMI 
TaxTMI 
2024 (3) TMI 553
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....od of limitation. 2. The appellant is engaged in the manufacture of Polyester Stample Fibre (PSF) and Nylon Staple Fibre (NSF) classified under Chapter Heading 55032000 and 55031900 respectively of first schedule of Central Excise Tariff Act, 1985. On the basis of intelligence, that appellant is wrongly availing the benefit of Notification No.08/2014-CE dated 11.07.2014 on their final product by using popcorn which is made from textile waste as raw material whereas the conditions notified is that goods should be made from plastic waste, search proceeding was carried out on 29.05.2017 at the factory premises of the appellant. 3. Based on the investigation conducted by the Department, a show cause notice dated 06.02.2019 was issued to the a....
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....ng to the Counsel, Polyethylene Terephthalate can be made both into fibre and plastic and, therefore used in the production of the synthetic fibres in the textile industry and also for bottle production. He further submitted that the word 'plastic' used in the notification is not specific but is of general use and therefore, the term 'plastic waste' means waste that contains Polyethylene Terephthalate. Thus yarn/textile waste is plastic waste under the notification. Learned Counsel also submitted that the substantive benefit cannot be denied on account of procedural lapse by the appellant. Challenge has also been made to the levy of interest and penalty. 6. Learned Authorised Representative for the Revenue reiterated the findings of the Ad....
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....Filament yarn manufactured from plastic scrap or plastic waste including waste polyethylene terephthalate bottles"; The wordings of the notification are absolutely clear, simple and unambiguous. It specifically restricts the benefit of concessional rate of duty to only those Polyester Staple Fibre or Polyester Filament Yarn which are manufactured from plastic scrap or waste including waste Polyethylene Terephthalate bottles. Needless to say that law on the interpretation of the exemption notification is settled by the Apex Court that the exemption notification has to be construed strictly and there is no scope for adding or subtracting any word in the notification. The Constitution Bench in the case of Commissioner of Customs (Import), Mum....
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....ficiary must fall within the ambit of the exemption and fulfill the conditions thereof. In case such conditions are not fulfilled, the issue of application of the notification does not arise. 14.2 It is settled law that the notification has to be read as a whole. If any of the conditions laid down in the notification is not fulfilled, the party is not entitled to the benefit of that notification. An exception and/or an exempting provision in a taxing statute should be construed strictly and it is not open to the court to ignore the conditions prescribed in industrial policy and the exemption notifications. 14.3 The exemption notification should be strictly construed and given meaning according to legislative intendment. The Statutory pr....
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.... and in this manufacturing process polymers are broken down resulting in a product that is the primary form of PET. Thus, the product 'Popcorn' is a primary form of a single thermoplastic material i.e. polyethylene Terephthalate (PET). Since 'Popcorn' does not qualify as plastic waste and scrap the benefit of the notification ibid is not admissible as the said notification allow only plastic waste and scrap as the inputs, including waste PET bottles to be used for manufacture of PSF. Textile yarn waste/'Popcorn' is not permissible as input for availing concessional rate of duty under the notification ibid. Thus I find that the contention of the notice that 'Popcorn' used to manufacture PSF is nothing but plastic waste does not have feet in ....
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....son who claims exemption or concession has to establish that he is entitled to that exemption or concession, we are of the view that the appellant has failed to substantiate the same. Also, if exemption is available on complying with certain conditions, the said conditions have to be complied with and as per the discussion above, it cannot be said that the appellant has complied with the mandatory conditions of the notification. We also reject the contention of the learned Counsel that the terms 'plastic waste' in the notification is not specific but is of general nature. The wordings of the condition provided in the notification are absolutely clear and unambiguous and leaves no manner of doubt. 13. We find that on point of limitation, th....