| Date: |
30-06-1999
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| Notification No: |
Central Excise Circular No 464/1999
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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: |
Excisability of intermediate products such as binder/ resin/ glues used in the manufacture of particleboards
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Excisability of intermediate products such as binder/ resin/ glues used
in the manufacture of particleboards
Circular
No. 464 dated 30th June 1999
This
is with reference to manufacture of particle boards (plain and pre-laminated)
made from sugarcane bagassee and other agricultural wastes during the process of
manufacture specially developed binders and mixed with the agricultural residues
like dried sugarcane Bagassee. These binder/ resin/ glues are specifically
developed and made by the industry only for captive consumption and not for
external sale. These binders have a very short shelf life of a few hours only
and can neither be bottled nor transported nor stored for long.
2.
A doubt has been raised regarding excisability of such binder/ resin/
glues.
3.
In this context, your attention is drawn to the Supreme Court judgement
in the case of Moti Laminates Pvt. Ltd. vs. Collector of Central Excise,
Ahmedabad [1995 (76) ELT 241 (SC)] wherein it was held that intermediate goods
produced and used for captive consumption were not liable to duty, if not
marketable, notwithstanding the fact of their being specified in Tariff
Schedule.
4.
All pending disputes/assessments on the issue may be settled in the light
of these guidelines.
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