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TMI Blog2012 (8) TMI 852X X X X Extracts X X X X X X X X Extracts X X X X ..... Headings 3901 and 3904 of the Central Excise Tariff. The appellant for manufacture of PE/PVC granules were using plastic scrap as well as fresh PVC to the extent of 20% to 40%. In respect of fresh PVC granules, they were availing the Cenvat credit. For availing the exemption Notification No. 56/2002-C.E., in accordance with the scheme of this notification, they were first paying the duty on the finished product cleared during a month, through the Cenvat credit to the extent available as on the end of the month and the balance amount of duty was being paid through PLA. The department was of the view that since the appellant were using mainly the plastic scrap at manufacture of PVC/PE granules, the goods manufactured by them were fully and un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal dated 1-3-2012 upheld the Assistant Commissioner's order except for setting aside of penalty imposed on the appellant. Against this order of the Commissioner (Appeals), this appeal along with stay application has been filed. 2. Heard both the sides in respect of stay application. 3. Shri Mayang Garg, Advocate, the learned Counsel for the appellant, pleaded that the Notification No. 4/2006-C.E. (Sl. No. 68) exempted the plastic materials recycled in India out of the scrap or waste of plastic, that this exemption would be available only if the plastic granules are manufactured hundred per cent out of the plastic scrap or waste and would not be available when for manufacture of plastic PVC/PE granules some fresh plastic materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Cenvat credit and have paid the balance amount of duty through PLA whose self-credit has been taken in terms of Notification No. 56/2002-C.E. According to the Department their product is fully and unconditionally exempt from duty under Notification No. 4/2006-C.E. (Sl. No. 78) as their final products have been manufactured mainly out of plastic waste and scrap. If this plea of the Department is accepted, the appellant's duty liability would be nil. By availing exemption Notification No. 56/2002-C.E., the appellant have got refund by way of self-credit of the duty which had been paid by them through PLA. Thus so far as the appellant are concerned, this is a revenue neutral situation, as irrespective of whether the appellant availed Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X
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