1999 (4) TMI 155

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..... R, submitted that once the chemical mixed in appropriate proportion are placed in the tunnel of the foaming machine, the chemicals lose their identity completely and the product of Chapter 39 comes into existence at that stage; that whatever wastage of P.U. Foam arises, that arises only after that stage; that as the appropriate duty has not been paid at that stage, the benefit of nil rate of duty to waste, parings and scrap of P.U. Foam cannot be extended under Notification No. 53/88. He, further, submitted that it is settled law that a notification has to be interpreted strictly and if the condition specified in the notification is not satisfied, its benefit can not be allowed. He also mentioned that there is another Notification No. 54/88 .....

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..... ntended that the first product which comes out is waste, etc. and he relied upon the decision in the case of C.C.E., Meerut v. Maruthi Foam (P) Ltd. reported in 1996 (85) E.L.T. 157 in which the benefit of Notification No. 53/88 was extended to top skin, bottom skin and side skin cut from P.U. Foam blocks. He also referred to decision in the case of C.C.E. v. Indian Petro Chemicals, reported in 1997 (92) E.L.T. (S.C.) wherein it was held that if two exemption notifications were applicable, benefit of the notification which was more beneficial to the assessee can be given. 4. We have considered the submissions of both the sides. Srl. No. 24 of Notification 53/88 reads as under :- Sr. Heading Description Rate .....

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..... when the mould is opened and the final product is taken out. It is, therefore, not possible to agree with the view that such wastes or parings or scrap can be identified as arising only after the P.U. Foam Paddings are finally manufactured. In fact the process itself is so quick that the waste, parings and scrap appear to arise simultaneously with the main finished product and thereby it tends to give an impression that as if the waste etc. have arisen only after the final product is formed whereas in reality it seems more logical to accept the position that such waste etc. actually arose in the course of manufacture of the final product. The very nature of the process involved is relevant for this limited purpose. When viewed from this ang .....

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