| Date: |
19-03-2002
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| Notification No: |
Central Excise Circular No 628/2002
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| Issuing Authority: |
Central Excise
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| Type: |
Circular
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| File No: |
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| Subject: |
Central Excise Matter Regarding Removal of Cops/ Cones etc. under erstwhile Rule 96E for Conversion into Hank Yarn
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Central Excise Matter Regarding Removal of Cops/ Cones etc. under
erstwhile Rule 96E for Conversion into Hank Yarn
Central Excise Circular No. 628 dated
19th March 2002
I am directed to invite your attention
to Board�s Circular No. 72/ 88 - CX.6 dated 4.10.1988 vide which it was
directed to issue protective show cause notices to demand duty on cotton yarn on
cops/ cones consumed captively or sent outside factory premises for conversion
into Hank yarn till a final decision in the matter is communicated. Board was of
the view that since plain reeled Hanks are used only by the Handloom Sector,
charging duty on the intermediate goods i.e. cotton yarn on cops/ cones etc.
shall nullify the purpose of exemption. The Auditor General (Audit) has finally
accepted the view of the department in this regard.
2. Pursuant to settlement
of CERA objection in the matter, Board has decided that all such cases pending
disposal and kept in call Book should be taken out and decided expeditiously.
3.
Field formations may be informed accordingly.
4.
Receipt of the same may please be acknowledged.
5.
Hindi version will follow.
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