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Clarification regarding Central Excise � Excisability and
classification of Cable Jointing Kits
Circular
No. 583 dated 20th August 2001
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 etc., so that a new commercially
distinct product viz, �Cable Jointing 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 Andhra Pradesh in W.P. Nos. 8818, 22078 and 24242 file
by M/s XL Telecom Ltd. & others has, vide judgement dated 2.2.98 [1999 (105)
ELT 263 (AP)] held that the cable jointing kit is not excisable as on
manufacture is involved. The Court has held that by placing all articles in one
kit, the kit has a distinct name known as �cable jointing 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. 1462-1464/1999,
4314-4315/1999 & 4659/1999).
3.
In view of above, the issue regarding acceptance of Andhra Pradesh High
Court 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 advise of the Law
Ministry. The classification of cable jointing kit will accordingly be governed
by the A.P. High Court�s above said order. The Board�s Circular No.
308/24/97-CX dated 27.3.97 therefore, stands withdrawn.
4.
The Trade and Field formations
may please be informed accordingly.
5.
Receipt of the Circular may please be acknowledged
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