 |
OFFICE
OF THE COMMISSIONER OF CUSTOMS, |
PUBLIC
NOTICE NO. 144 /2001
Sub: Central Excise - Excisability of plastic plaiting material (PPM) used for manufacture of plastic mats/satranjis – regarding.
Government of India, Ministry of
Finance, Department of Revenue, New Delhi, Drawback Circular No.577/2001-CX.
vide F.No.93/4/98- CX3 dated 11.06.2001, is reproduced below for the guidance
of the importers, clearing agents and trading staff.
C11/84/2001-AP (PORT) (JOSEPH
DOMINIC)
CUSTOM HOUSE, CHENNAI-1 COMMR. OF CUSTOMS
DATE : 13.07.2001
______________________________________________________________________
Circular
No.577/14/2001-CX
F. No. 93/4/98-CX.3
It has been brought to the notice of the Board that field formations are demanding duty on the plastic plaiting material (small capicillary tubes) used for manufacture of plastic mats/satranjis classifying them under heading 3926.90 or heading 39.17 of the Central Excise Tariff.
2. The
matter has been examined in the Board. The plastic tubes are manufactured out
of polypropylene granules. These are fed into extruder to obtain a product
having a tube like appearance that is plaited/weaved to produce mats called
satranjis. The PPM are approximately of 1.5 mm diameter. These tubes are cut to
different sizes depending upon the type of mat to be reproduced – usually
lengths of 2 or 4 feet are only taken. Subsequently, the tubes are put on the
looms and the mats are woven.
3. To become ‘goods’ an article must be
something which can ordinarily come to the market to be bought and sold and is
known to the market. The units engaged in the manufacture of plastic mats have
their own extruders for conversion of plastic granules into PPM. The product is
captively consumed and is not available in the market for sale. Further, it is
not capable of being marketed because it loses shape if not weaved or plaited
immediately. Therefore, the product is neither marketed nor considered to be
marketable in the commercial parlance.
4. Accordingly, it is clarified that plastic plaiting material (tubes) used for manufacture of plastic mats, not being capable of being bought and sold in the market in the normal course of trade, is not an excisable product and no duty is therefore, leviable on such plastic plaiting material (tubes) used for manufacture of plastic Mats.
// ATTESTED //
(S.SANKARAVADIVELU)
DY. COMMR OF CUSTOMS (APPG)
|
|
