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OFFICE OF THE
COMMISSIONER OF CUSTOMS, |
PUBLIC
NOTICE NO. 207 / 2001
Subject: Central Excise - Excisability and classification of
Cable Jointing Kits - Clarification regarding.
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Government of India, Ministry of
Finance, Department of Revenue, New Delhi, Circular No.583/20/201-CX, vide
F.No.151/18/96-CX.4 dated 20.08.2001, is reproduced below for the guidance of
the importers, clearing agents and trading public.
C11/107/2001-AP (PORT) (S.
SANKARAVADIVELU)
CUSTOM HOUSE, CHENNAI-1. DY. COMMR. OF CUSTOMS (APPG)
DATE :10.09.2001
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Circular No.583/20/201-CX,
F.No.151/18/96-CX.4 dated 20.08.2001
Reference is invited to Board's Circular No.308/24/97-CX dated 27.3.97 whereby
it was clarified that the process of putting together the duty paid articles
into a container like carton, kit etc., so that a new commercially distinct
product viz, 'Cable Jointing Kits' comes into existence would amount to
manufacture and would be appropriately classifiable under heading 85.47 of
Central Excise Tariff Act, 1985.
2. The High
Court of Andhra Pradesh in W.P. Nos8818, 22078 and 24242 filed by M/s XL
Telecom Ltd & others has vide judgement dated 2.2.98 [1999 (105) ELT 263
(AP)] held that the cable jointing kit is not excisable as no manufacture is
involved. The Court has held that by placing all articles in one kit, the kit
has a distinct name known as 'cable jointing kit', but there is no change in
character and use of the articles placed in the kit. The SLPs filed by the
Department on the same issue in the case of M/s REPL and Others have been
dismissed by the hon'ble Apex Court on 3.3.2000 ( C.A.Nos 1462-1464/1999,
4314-4315/1999 & 4659/1999).
3. In view
of above, the issue regarding acceptance of Andhra Pradesh High Court above
Order was taken up with the Ministry of Law who have opined that in view of the
order of the Supreme Court in the case of REPL, it appears advisable that the
order of the Hon'ble High Court of A.P. maybe accepted by the Administrative
Department. The Board has accepted the above advise of the Law Ministry. The
classification of cable jointing kit will accordingly be governed by the A.P.
High Court's above said order. The Board's Circular No. 308/24/97-CX dated
27.3.97 therefore, stands withdrawn.
//
ATTESTED //
(S.
SANKARAVADIVELU)
DY. COMMR. OF CUSTOMS
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