2003 (3) TMI 371 - AT - Central Excise

Summary

Issues:
1. Correct classification of PVC lumps waste.
2. Correct classification of PVC film waste.

Analysis:
1. The issue in this appeal concerns the classification of PVC lumps waste and PVC film waste. The appellant, a manufacturer of PVC products, claimed classification under sub-heading 3915.90 as waste, parings, and scrap of plastics with exemption under Notification 20/93. The Assistant Collector disagreed and classified PVC lumps waste under 3904.21 or 3904.22 and PVC film waste under 3920.11 or 3920.12. The Commissioner accepted the appellant's claim, relying on a previous tribunal decision. The appellant argued that the waste products are correctly classified as waste, forming at different stages of manufacture, not as primary forms of plastics. The tribunal found no error in the Commissioner's order, noting that the waste arises before the conversion of raw materials into films and does not qualify as plastic in primary form.

2. Regarding PVC film waste, the tribunal agreed with the Commissioner that the waste pieces from edge cutting of PVC films do not meet the criteria to be classified as films. The waste strips are narrow and arise due to trimming uneven edges, lacking the specifications to be considered films. The tribunal upheld the Commissioner's decision, emphasizing that the waste in question does not transform into film merely based on thickness and must meet other criteria to be classified as films. The tribunal also highlighted that the Commissioner's order was consistent with a previous tribunal decision in a similar case. Consequently, the tribunal found no merit in the appeal and rejected it based on the classification and dutiability of the PVC waste products as waste, scrap, etc., rather than primary forms of plastics or films.