2014 (3) TMI 205 - AT - Central Excise

Classification - manufactured of goods out of plastic material imported being Cellulose Acetate Non Plasticised Powder Granules (Job Lot - Sweepings) - Benefit of Notification No.4/2006-CE - CETH 3901 to 3914 or CETH 3915 - Held that - A plain reading of the above Chapter Note simply seem to convey that CTH 3915 does not apply to waste, parings and scrap of a single thermoplastic material when transformed into primary forms. In the present case, there is no evidence on record that plastic granules imported are made out of waste, parings and scrap of plastics. The sample invoices and bills of entry copies provided by the appellant convey that granules are of mixed colours. A certificate of origin available in the appeal filed by the appellant describe the imported goods as Cellulose Acetate Non Plasticised Powder Granules (Job Lot - Sweepings) . In view of the above facts available on records prima facie appellant has not made out a case of complete waiver as the scheme of classification of waste and scrap under Chapter 39 of Customs Tariff Act 1975 does not suggest that waste and scrap of plastic materials can be classified under headings other than CTH 3915 - Conditional stay granted.

Issues Involved:
- Benefit of Sr.No.78 of Notification No.4/2006-CE
- Classification of imported goods as waste & scrap under Chapter-39
- Eligibility for exemption under Chapter Note 7 of Customs Tariff Act 1975

Issue 1: Benefit of Sr.No.78 of Notification No.4/2006-CE
The case revolved around a Stay application filed against an order confirming a demand and penalty imposed on the appellant under Central Excise Rules. The main issue was whether the benefit of Sr.No.78 of Notification No.4/2006-CE was applicable to the appellant for goods manufactured out of plastic material imported by them. The appellant argued that the imported goods were waste & scrap falling under Chapter-39 of the Customs Tariff Act 1975, not classified under CETH 3915. The Revenue, however, contended that there was no evidence that waste, parings & scrap of a single thermoplastic material had been transformed into primary forms of CETH- 3901 to 3915.

Issue 2: Classification of imported goods as waste & scrap under Chapter-39
The Tribunal analyzed the relevant entry of Notification No.4/2006-CE, which allowed exemption for plastic materials reprocessed in India out of the scrap or waste of certain goods falling within specific chapters. The appellant claimed that the imported granules were reprocessed material considered as waste & scrap under Chapter 39. However, the Tribunal noted that there was no evidence to support that the plastic granules imported were made out of waste, parings, and scrap of plastics. The description on invoices and bills of entry indicated mixed colors and were identified as 'Cellulose Acetate Non Plasticised Powder Granules (Job Lot - Sweepings).' The Tribunal concluded that the appellant had not established a case for complete waiver as per the classification scheme of waste and scrap under Chapter 39 of the Customs Tariff Act 1975.

Issue 3: Eligibility for exemption under Chapter Note 7 of Customs Tariff Act 1975
The Tribunal referred to Chapter Note 7, which stated that heading 3915 does not apply to waste, parings, and scrap of a single thermoplastic material transformed into primary forms. The Tribunal found that the evidence provided did not demonstrate that the plastic granules imported by the appellant were made from waste and scrap of plastics. Consequently, the Tribunal ordered the appellant to deposit a specified amount within a given period and comply with the conditions before the case could be listed for regular hearing. A stay on the recovery of the balance amounts was granted pending the appeal's disposal, subject to the specified payments.

This detailed analysis of the judgment highlights the key issues, arguments presented by both parties, and the Tribunal's reasoning in determining the outcome of the case.

← Previous Next →