2015 (3) TMI 1077 - AT - Customs

Confiscation of goods - Whether the HDPE/LDPE Regrind Plastic imported by the appellants is a restricted item as per DGFT Public Notification No. 392 (PN) 92-97 dated 04.01.1997 or not - Held that - Imported material has been classified by the Department under CTH 3901 which is meant for plastic meterials in primary form. As per the opinion dated 21.09.2011 given by & CIPET, Ahmedabad also the imported material represent Regrined Granules produced from Scrap products. In view of the facts available on records, it is observed that imported material is regenerated granules made from single thermoplastic material which has been classified in the CTH 3901. Such regenerated/Regrinded Granules can not be considered as waste & Scrap to which P. NO. 392 (Pn)/92-97 dated 01.01.1997 is applicable Department is not seeking change in the classification of the Imported goods under CTH 39.15. - there is no reason to interfere with the order passed by the first appellate authority - Decided against Revenue.

Summary

Issues:
1. Classification of HDPE/LDPE Regrind Plastic under Customs Tariff Act 1975.
2. Whether the imported material is considered as waste & scrap under DGFT Public Notification No. 392 (PN) 92-97 dated 04.01.1997.

Issue 1: Classification of HDPE/LDPE Regrind Plastic under Customs Tariff Act 1975:
The appeal was filed by the Revenue against the first appellate authority's decision regarding the classification of the imported HDPE/LDPE Regrind Plastic under CTH 3901 of the Custom Tariff Act 1975. The Revenue argued that the imported goods should be classified as plastic waste & scrap based on the Chemical Test report. On the other hand, the respondent contended that the imported material was correctly classified under CTH 3901 as plastic material in primary form, not as waste & scrap. The Tribunal examined the case records and the opinion of CIPET, Ahmedabad, concluding that the imported material was regenerated granules made from single thermoplastic material falling under CTH 3901. The Tribunal held that the regenerated granules cannot be considered waste & scrap, and therefore, the classification under CTH 39.15 was not sought by the Department.

Issue 2: Classification under DGFT Public Notification No. 392 (PN) 92-97 dated 04.01.1997:
The second issue revolved around whether the imported HDPE/LDPE Regrind Plastic was a restricted item under DGFT Public Notification No. 392 (PN) 92-97 dated 04.01.1997. The Revenue contended that the material should be confiscated due to restrictions imposed under this notification. However, the Tribunal, after considering the arguments and case laws presented by the respondent, held that the imported material, classified under CTH 3901 as regenerated granules, did not fall under the category of waste & scrap to which the notification applied. Relying on the case laws cited by the respondent, the Tribunal rejected the Revenue's appeal, affirming the decision of the first appellate authority.

In conclusion, the Appellate Tribunal CESTAT AHMEDABAD, in the judgment delivered by Mr. H.K. Thakur, upheld the classification of the imported HDPE/LDPE Regrind Plastic under CTH 3901 as plastic material in primary form, not as waste & scrap. The Tribunal also determined that the material did not qualify as a restricted item under DGFT Public Notification No. 392 (PN) 92-97 dated 04.01.1997. Consequently, the appeal filed by the Revenue was rejected, and the decision of the first appellate authority was upheld.