SWADESHI POLYTEX LTD. Vs. CCE

JUDGEMENT

(1.) THE benefit of exemption in terms of Notification No. 4/97 -CE dated 1.3.97 has been disallowed on waste including noil yarn waste and guaranteed stock of manmade fabrics of polyester on the ground that the conditions stipulated in S. No. 110 of the Table thereto have not been fulfilled. Under S. No. 110 exemption is available to "all goods produced in a factory other than a factory producing manmade staple fibres or manmade filament yarns of organic polymers by manufacturing processes, either by polymerisation of organic polymers......... The finding of the department is that the waste arose in the course of manufacture of manmade staple/fibres by polymerisation of organic polymers and hence excluded from the benefit of the notification is based upon the report of the Chief Chemist, CRCL.

(2.) WE have heard both sides. The Chief Chemist, CRCL vide his report dated 4.8.97 has opined as under: