Sub:- Central Excise-Excise duty exemption in respect of   Plastic footwear of retail sale price not exceeding Rs.125 per pair - Reg.

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         Copy of Tax Research Unit letter F.NO.332/14/2001 - TRU dated 30.5.2001 on the above subject is communicated for information and necessary action. 

(Issued from file C.No.IV/16/2/2001 CX.POL)

                                                                 /sd/

(JANAKI ARUNKUMAR)

                  ADDITIONAL COMMISSIONER (TECH)

//ATTESTED//

  /sd/-

(JOHN ABRAHAM)

Superintendent (Tech)

To

As per mailing list (Both trade and department)

Copy of letter F.No. 332/14/2001- TRU dated 30.5.2001

Sub:- Excise duty exemption in respect of plastic footwear   of retail Sale price not exceeding Rs. 125 per pair.

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         I am directed to refer to notification No. 18/2001 - Central Excise dated 26.4.2001, providing exemption to footwear made exclusively of plastic materials and of retail price not exceeding       Rs. 125 per pair.

2.              In this context, it has been reported that while certain footwear are essentially of plastic materials, normally made by moulding machine, they have buckles, tabs, eyelet stays or in-soles (for glueing on the surface of the inner sole) of material other than plastic. Doubts have been expressed whether such footwear are also eligible to exemption under the aforesaid notification.

3.              The matter has been examined. It is seen that footwear of the aforesaid kind continue to be essentially made of plastic material. It is, therefore, not intended that the benefit of exemption should be denied to such footwear. The expression " footwear made of plastic material" should be given its normal meaning. However, in order to put the intention beyond any pale of doubt, notification No. 3/2001 - CE dated 1.3.2001 has been further amended by notification No. 30/2001 - CE dated 29.5.2001 and an explanation has been inserted. This explanation is clarificatory in nature and the benefit of exemption to the aforesaid footwear applies for the past clearances as well.

                                                  /Sd/-       (P.R.CHANDRASEKHARAN )

                                                                         DIRECTOR(TRU)