OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE

CHENNAI - II COMMISSIONERATE : CHENNAI - 35

 

 

TRADE NOTICE No. 44/2001                                                                                                     Dated : 27.06.2001

 

 

            Sub. :   Central Excise - Excisablity of Plastic Plaiting Material (PPM) used for 

                        manufacture of plastic mats/satranjis-Reg.

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A copy of Circular No. 577/14/2001 CX issued in F.No. 93/4/98-CX.3 dated 11^th June 2001 received from the officer on special duty (CX.3) to the Govt. of India, Ministry of Finance, Department of Revenue, New Delhi on the above subject is communicated herewith for information and necessary action.

 

The contents of this Trade Notice may please be brought to the notice of all constituent members of your association in general and manufacturers in particular.

 

(Issued from file C.No. IV/16/09/2001 - Tech.)

 

 

                                                                                                                    s/d

                                                                                                                                 (G.V. KRISHNA RAO)

JOINT COMMISSIONER (TECH)

 

To

As per mailing list

(Both Trade & Department)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                    Circular No. 577/14/2001-CX

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

                                    Government of India

                                     Ministry of Finance

                                 Department of Revenue  

            Central Board of Excise and Customs

                                                            New Delhi, the 11^th June, 2000

To

All Chief Commissioner of Central Excise and Customs / Commissioners of Central Excise

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

  Sir/Madam,

            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 plstic tyubes 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 1.5mm 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 tken.  Subsequently, the tybes aare 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 brought 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 on plaited immediately.  T'herefore, 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 suitable informed.

6.         Receipt of this circular may please be acknowledged.                                                               

                                                                          Yours faithfully,

                                                                                    SD/-

                                                                 (MALLIKA MAHAJAN)                                                                    Officer on Special Duty (CX.3)                            

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