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TMI Blog1997 (9) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the assessee on granules obtained on recycling of waste, inasmuch as granules are by themselves the finished product and cannot be termed as waste to attract the provisions of Rule 75D. Three Appeals (Nos. E/1360-1362/93) have been filed by the Department against the same impugned order on the ground that the Appellate Authority has not properly interpreted the spirit of Rule 57D of Central Excise Rules, 1944 inasmuch as she has held only that part of the credit of duty on the inputs which were used in the manufacture of waste which was recycled for the manufacture of the granules will be disallowed. It has also been prayed that Rule 57D was not attracted and that Rules 57D and 57F (as it then was) should be read together and should no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e inputs, which had been used in the manufacture of waste recycled into granules and also cleared as waste. The Collector (Appeals) held that the credit on the inputs contained in the waste arising during the manufacture of BOPP film is covered by Rule 57D irrespective of the quantum of waste which may arise. Against this finding, the Revenue has come up in appeal whereas the Assessee has filed the appeal on the finding that `however, polypropelene granules are a finished product. Waste which is used in the manufacture of polypropelene granules and which have been cleared at NIL rate of duty on that portion of the waste, the Assessees are not entitled to claiming Modvat. Against this, the Assessee has come up in appeal. 5. Arguing for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itial setting up problems and frequent power trappings and this has not been controverted by the Department. In the light of the fact that the final product is BOPP films which is cleared on payment of duty (and not granules), we hold that credit of inputs contained in waste arising during the manufacture of BOPP films is covered by Rule 57D irrespective of the quantum of waste. We uphold the impugned order and reject the appeals of the Revenue. 6. The ld. Sr. Advocate submitted that the Hon ble Vice President, while recording his own decision, observed that `since in the instant case, the waste material is being admittedly utilised for recycling and production of granules as well, therefore, the extent to which it is being so utilised i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les were exempted. The ld. Counsel submitted that since the decision of this Tribunal squarely covers the circumstances in their case fully and, therefore, prayed that the appeals may be allowed. 9. Shri P.K. Jain, the ld. SDR appearing for the Revenue, submits that waste arising in the process of manufacture of the final product is covered by Rules 57D 57F (as it then was). He submitted that these two rules cannot be read in isolation and should be read together for harmonious construction thereof. He submitted that Rule 57F(4) clearly stipulates as to how the wastage of inputs should be dealt with on which credit has been utilised. He refers to sub-rule (4) of Rule 57F and submits that this sub-rule provides for disposing of the wast ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te exempted, Rule 57D(1) is relevant whereas for the waste on which duty is required to be paid, Rule 57F(4) is relevant. 11. The ld. Sr. Advocate submitted that insofar as recycling of the waste into granules is concerned, the point was taken up by the Hon ble Vice President in his judgment in their own case and, therefore, the case must be accepted as settled in their favour. The ld. Counsel, therefore, submitted that in view of the above findings of the Tribunal and the submissions made by him, the Appeals of the Assessees may be allowed. 12. Heard the submissions of both sides. On careful consideration of the submissions made as also on perusal of the relevant rules and the case law cited and relied upon by both sides, we observe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nules obtained after recycling of waste. Therefore, the limited issue is what happens to the granules obtained from recycled waste which are again cleared as exempted goods under Notification No. 53/88. The argument of the Assessee was that this aspect was looked into by the Tribunal in their own case inasmuch as the Hon ble Vice President, writing his separate order, had brought out that part of the waste was recycled into granules and granules were cleared partly as exempt under Notification No. 53/88. We have perused the hon ble Vice President s order also. We find that the hon ble Vice President has observed as above, but at the same time directed remand for further examination. But, such remand was not permitted and thus the observatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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