Sub:  Central Excise - Excisability of Plastic Plaiting Material (PPM) used for manufacture of plastic mats/satranjis -reg

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                       It has been brought to the notice of the Board that duty is being demanded 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 produced - usually lengths of 2 0r 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.

(Issued from file C.No.IV/16/2/2001 CX. Pol. Vol.V)

(Authority:  Circular No.577/14/2001-CX , in F.No.93/4/98-CX.3)

                                                                                               Sd/-

                                                                                (JANAKI ARUNKUMAR)          

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