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TMI Blog2016 (3) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... POY, the Tribunal already remanded this matter for examination of this issue in the light of exemption Notification No.89/1995-CE, dt.18.05.1995. On a query from the Bench, the learned Advocate submits that in earlier case, the de-novo adjudication is still pending. So, it is appropriate that in the present appeal, this issue should be remanded to the Adjudicating authority. The demand of duty alongwith interest on POY is set aside. The penalties are set aside. The Adjudicating authority is directed to examine the demand of duty on waste of POY and PSF in the light of the earlier Tribunal order. Needless to say that the Adjudicating authority shall give proper opportunity of hearing before passing the order. The appeal filed by the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only and POY, POY waste and PSF waste are different goods. 3. The learned Advocate on behalf of the Appellant submits that the Tribunal in their own case for the earlier period vide Order No.A/10613-10622/2015, dt.20.05.2015 (M/s Khodiar Fibre Film and Others Vs Commissioner of Central Excise Service Tax, Surat) allowed the appeal in respect of POY and the demand of duty on waste of PSF and POY was remanded. 4. For the purpose of proper appreciation of the case, we reproduce below the relevant portion of the earlier Final Order dt.20.05.2015 (supra) as under:- 4. Heard both sides and perused the case records. The issue involved in these appeals is whether PSF and POY manufactured by the appellant from plastic waste pet bottles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lymerization of organic monomers, such as polyamides, polyesters, polyurethanes or polyvinyl derivatives; or (b) By chemical transformation of natural organic polymers (for example, cellulose, casein, proteins or algae), such as viscose rayon, cellulose acetate, cupro or alginates. It remains undisputed that none of these processes, had been undertaken by the assessee in respect of their fibre so as to bring the same within the ambit of this Chapter 54 or even Chapter 55 which are part of the First Schedule. The learned Commissioner (Appeals) has, in our view, rightly dropped the duty demand against the assessees on this ground. 5. Thus the impugned goods were not classifiable under the Central Excise tariff during the perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from plastic waste or scrap or plastic waste including waste polyethylene terephthalate (PET) bottles (which is already exempt w.e.f. 8.5.2012) is being exempted retrospectively w.e.f. 29.6.2010 to 7.5.2012. Clause 102 of the Finance (No. 2) Bill, 2014 refers. Intermediate product Tow arising during the course of manufacture of such PSF/PFY is being exempted retrospectively w.e.f. 29.6.2010 to 10.7.2014 so as to provide relief to the manufacturers of such PSF/PFY. Clauses 102 and 103 of the Finance (No.2) Bill, 2014 refer. 5. In view of the above settled position of law, demands for the period after 29.06.2010 do not stand. PSF or PFY manufactured from plastic scrap and plastic waste were exempted as per the amendment carried under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant fairly agreed that admissibility of Notification No. 89/95-CE dated 18.05.1995 was not raised by the appellants before the adjudicating authority. It is observed that exemption to waste and scrap under Notification No. 89/95-CE is subject to certain conditions mentioned in proviso contained in this notification. The aspect of availability of exemption is, therefore, required to be remanded back to the adjudicating authority, who will decide the same in the remand proceedings, after giving opportunity of personal hearing to the appellant. 7. So far as imposition of penalties upon other appellants is considered, in our considered view, no penalties are attracted because on merits the appeals filed by the appellants are allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are then solidified by air-quenching and wound on take-up winders after application of spin-finish. The yarns manufactured could be UDY (un-drawn yarn), POY (partially oriented yarn) or FDY (fully drawn yarn) depending upon the winder speed and heat setting methods. 6. We find from the above report that PFY covers UDF (Undrawn Yarn), POY (Partially Oriented Yarn), or FDY (Fully Drawn Yarn), depending upon the winder speed and heat setting methods. In our considered view, the PFY as mentioned in the exemption notification, would also cover the POY as per the report of DSIR. So, we agree with the earlier order dt.20.05.2015. 7. Regarding the demand of duty on waste of PSF and POY, the Tribunal already remanded this matter for examin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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