ORDER
V.K. Agrawal, Member (T)
1. The issue involved in this appeal is the classification of Polycondensation waste in lump form generated during the manufacture of PET Chips under sub-heading 3915.90 as claimed by the appellants or 3907.60 as decided by the Department.
2. When the matter was called none appeared on behalf of the Appellants. However, they vide their letter dated 28-5-1998 have requested for decision on merit.
3. We heard the ld. S.D.R. and perused the records. Ld. S.D.R. submitted that according to the note 7 to Chapter 39 of the Schedule to the Central Excise Tariff Act, Heading 39.15 does not apply to waste, parings and scraps of single thermoplastic materials transformed into primary form (Heading No. 39.01 to 39.14). He also submitted that according to Note 6 (a) (ii) of the Chapter 39, lump is one of the primary form. He therefore submitted that that what is obtained in lump form will not be classifiable under Heading 3915.90 in view of the Chapter No. 7.
4. After going through the submissions of the department and perusing the records we find that it has not come out clearly both in the Order-in-Original and the order passed by the Collector (Appeals) whether there is any transformation of the waste into primary form. For the purpose of proper classification it is essential to ascertain as to how the impugned material is generated. Ld. D.R. drew our attention to the fact that lumps are one of the primary form for the purpose of Heading 39.01. to 39.14 and if waste is transformed into primary forms, it will not be classifiable under Heading 39.15 as per Note 7. We, therefore, find necessary to remand the matter to the Asstt. Collector for ascertaining the method of generating the impugned product and its utilisation and to decide the matter afresh after affording a reasonable opportunity to the appellants of being heard. The Appellants are at liberty to produce evidence whatever necessary. The appeal is therefore allowed by way of remand.