2015(03)LCX0234

IN THE CESTAT, WEST ZONAL BENCH, AHMEDABAD

Shri H.K. Thakur, Member (T)

Commissioner of Customs, Ahmedabad

Versus

Surya Exim Ltd.

Final Order No. A/10249/2015-WZB/AHD, dated 13-3-2015 in Appeal No. C/11690/2013

Cases Quoted -

Commissioner v. Bhartiya Plastic Udyog - 1998(08)LCX0195 Eq 1999 (107) ELT 0161 (Tribunal) - Relied on [Para 3]
Ideal Sheet Metal Stampings and Pressing Pvt. Ltd. v. Commissioner
- 2001(03)LCX0140 Eq 2001 (131) ELT 0189 (Tribunal) - Relied on [Para 3]

Departmental Clarification Quoted-

D.G.F.T. Public Notice No. 392 (PN) 1992-1997, dated 4-1-1997 [Paras 1, 2,4]

Advocated By -

Shri Alok Srivastava, Authorised Representative, for the Appellant. Shri S. Suryanarayanan, Advocate, for the Respondent

[Order]. -

This appeal has been filed by the Revenue against OIA No. 242 to 243/2013/Cus/Commr.(A)/AHD dated 19-3-2003. The issue involved in these proceedings is whether the HDPE/LDPE Regrind Plastic imported by the appellants is a restricted item as per DGFT Public Notice No. 392 (PN) 1992-1997, dated 4-1-1997 or not. First appellate authority has held that the imported material has been classified under CTH 3901 of the Custom Tariff Act, 1975, which is not Waste & Scrap of plastic, and hence no confiscation/redemption/penalty is attracted.

2. Shri Alok Srivastava (AR) appearing on behalf of the Revenue argued that as per the Chemical Test report of Chemical Examiner, Vadodara & Central Institute of Plastics Engineering & Technology (CIPET), Ahmedabad the imported goods is a category of plastic waste & scrap which are liable to confiscation in view of the restrictions imposed under DGFT Public Notice No. 392/1997, dated 1-1-1997.

3. Shri Suryanarayanan (Advocate) appearing on behalf of the respondent argued that the imported goods, under bill of entry have been classified under CTH 39.01 which is not for plastic waste & scrap and no restriction of ITC policy are applicable. That the test report of CIPET Ahmedabad, mentioned in para-5 of the OIO dated 31-5-2012, that the imported material is Regrinded Granules which have been classified under CTH 3901 as plastic material in primary form. Learned Advocate relied upon the following case laws :-



1. Commissioner of Customs, New Delhi v. Bhartiya Plastic Udyog - 1998(08)LCX0195 Eq 1999 (107) ELT 0161 (Tribunal).

2. Ideal Sheet Metal Stampings & Pressing Pvt. Ltd. v. C.C., Mumbai - 2001(03)LCX0140 Eq 2001 (131) ELT 0189 (Tri.-Mumbai)



4. Heard both sides and perused the case records. The imported material has been classified by the Department under CTH 3901 which is meant for plastic materials in primary form. As per the opinion dated 21-9-2011 given by CIPET, Ahmedabad also the imported material represent 'Regrined Granules' produced from scrap products. In view of the facts available on records, it is observed that imported material is regenerated granules made from single thermoplastic material which has been classified in the CTH 3901. Such regenerated/Regrinded Granules cannot be considered as waste & scrap to which P. No. 392 (PN)/1992-1997, dated 1-1-1997 is applicable. Department is not seeking change in the classification of the imported goods under CTH 39.15.

5. In view of the above observation and the case laws relied upon by the Respondent, there is no reason to interfere with the Border passed by the first appellate authority. Appeal filed by the Revenue is accordingly rejected.


(Dictated and pronounced in Court)

Equivalent 2015 (323) ELT 0585 (Tri. - Ahmd.)