Sub: Central Excise - Excisability and classification of Cable 

Joining Kits - Clarification - Regarding.

$$$$$$$$

Copy of the Board's Circular No. 583/20/2001-CX (F.No. 151/18/96-CX.4) dated 20-8-2001 on the above subject is communicated herewith for necessary action. The Board's Circular No. 308/24/97-CX dated 27-3-97 mentioned in the said Circular was communicated vide this office Trade Notice No. 35/97 (General Circular No. 2/97) dated 16-4-97.

Contents of the Trade Notice may be brought to the notice of all concerned.

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

/sd/-

(JANAKI ARUNKUMAR)

Additional Commissioner (Tech.)

To

As per mailing list

(For both Trade and Department)

I am directed to invite reference 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 atc., so that a new commercially distinct product viz, 'Cable Joining 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 Andra Pradesh in W.P. Nos 8818, 22078 and 24242 filed by M/s. XL Telecom Ltd & others has vide judgement dated 2-2-98 [1999(105) ELT 283(AP)] held that the cable joining 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 joining 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. 1462/1999, 4314-4315/1999 & 4659/1999).

3. In view of the above, the issue regarding acceptance of Andra Pradesh High Court's 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 may be accepted by the Administrative Department. The Board has accepted the above said order. The Board's Circular No. 308/24/97-CX dated 27-3-97 therefore, stands withdrawn.

Yours faithfully,

Sd/-

(S.C. BHATIA)

UNDER SECRETARY TO THE GOVT OF INDIA