An apparatus to discard defective label from a labeling machine, comprises: a label path configured to move a label web containing a plurality of labels from an origin station to a destination station, wherein, the plurality of labels includes either a plurality of good labels, or a plurality of defective labels, or a combination thereof; an inspection unit configured to detect the defective labels from the plurality of labels in the label web, the said inspection unit further comprises a defect detector unit configured to compare a current label on the label web with a pre-required configurations so as to identify the plurality of good labels or the plurality of defective labels wherein the said inspection unit sends a good label signal or a defective label signal to a defective label discarding unit; the defective label discarding unit configured to discard the defective labels from the label web, the defective label discarding unit further comprises a push mechanism, a movable plate and a static guide roller in the label path, wherein, the movable plate is configured inside the static guide roller, further wherein the push mechanism is configured either to positioned at an original position in case the push mechanism receives the good label signal so that the movable plate is placed inside the static guide roller or the push mechanism pushes the movable plate if the push mechanism receives the defective label signal from the inspection unit so that the movable plate comes out of the static guide roller to give an angular motion to the label path so as to give a mechanical pressure to an initial portion of the defective label on the label path in contact with the movable plate that results in peeling of the initial portion of the defective label; a collecting unit configured to collect the plurality of defective labels, the collecting unit further comprises a motorized roll winder configured to move in case of the defective label signal wherein, the motorized roll winder is positioned such that the initial portion of the defective label sticks in a roll of the motorized roll winder once it comes out of the label path so that full label is plucked out of the label path and sticks in the motorized roll winder, further wherein the roll material is selected on the basis of sticking properties of self-adhesive labels in the label web; a labeling unit configured to label the good label in a required product; and a processor to synchronize the label path, the inspection unit, the defective label discarding unit, the collecting unit and the labeling unit. a label path configured to move a label web containing a plurality of labels from an origin station to a destination station, wherein, the plurality of labels includes either a plurality of good labels, or a plurality of defective labels, or a combination thereof; an inspection unit configured to detect the defective labels from the plurality of labels in the label web, the said inspection unit further comprises a defect detector unit configured to compare a current label on the label web with a pre-required configurations so as to identify the plurality of good labels or the plurality of defective labels wherein the said inspection unit sends a good label signal or a defective label signal to a defective label discarding unit; the defective label discarding unit configured to discard the defective labels from the label web, the defective label discarding unit further comprises a push mechanism, a movable plate and a static guide roller in the label path, wherein, the movable plate is configured inside the static guide roller, further wherein the push mechanism is configured either to positioned at an original position in case the push mechanism receives the good label signal so that the movable plate is placed inside the static guide roller or the push mechanism pushes the movable plate if the push mechanism receives the defective label signal from the inspection unit so that the movable plate comes out of the static guide roller to give an angular motion to the label path so as to give a mechanical pressure to an initial portion of the defective label on the label path in contact with the movable plate that results in peeling of the initial portion of the defective label; a collecting unit configured to collect the plurality of defective labels, the collecting unit further comprises a motorized roll winder configured to move in case of the defective label signal wherein, the motorized roll winder is positioned such that the initial portion of the defective label sticks in a roll of the motorized roll winder once it comes out of the label path so that full label is plucked out of the label path and sticks in the motorized roll winder, further wherein the roll material is selected on the basis of sticking properties of self-adhesive labels in the label web; a labeling unit configured to label the good label in a required product; and a processor to synchronize the label path, the inspection unit, the defective label discarding unit, the collecting unit and the labeling unit.