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Circular No.577/14/2001-CX
11th June, 2001.

F. No. 93/4/98-CX.3

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

 

Subject : Central Excise - Excisability of plastic plaiting material (PPM) used for manufacture of plastic mats/satranjis – regarding.

        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.

5.    Trade and field formations may be suitably informed.

6.    Receipt of this Circular may please be acknowledged.

 

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