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Excise duty structure - Clarifications regarding utensils of aluminium
and copper material used in their manufacture
Circular
No. 74dated 2nd November 1994
I
am directed to enclose herewith copies of Notification Nos. 134/94-Central
Excise and 135/94-Central Excise both dated the 27th October, 1994. These
notifications, inter alia seek to make the following changes in the
excise duty structure on utensils of aluminium and copper and the materials used
in their manufacture:
(a)
Unrefined and unwrought copper falling under Heading No. 74.02 and 74.03
of the Schedule to the Central Excise Tariff Act, 1985 intended for use in the
manufacture of utensils or handicrafts has been exempted from excise duty.
(b)
Untrimmed sheets or circles of copper falling under Heading No.74.09 and
intended for use of the manufacture of utensils or handicrafts has been
subjected to a specific excise duty @ Rs. 2000 per MT provided that no
input duty credit is taken under rule 57A or rule 57Q of Central Excise Rules,
1944.
(c)
Other sheets and circles of copper intended for manufacture of copper
utensils or handicrafts will, however, be fully exempted from excise duty.
The
above three exemptions will be applicable in respect of units, other than
primary producers, which manufacture copper form copper ore or copper
concentrate. The manufacturing units will however, have the option to pay duty @
15% ad valorem if they intend to take Modvat credit on their inputs.
(d)
Unwrought aluminium falling under Heading No.76.01 intended for use in
the manufacture of aluminium utensils has been fully exempted.
(e)
Aluminium plates and sheets (other than circles) falling under Heading
No.76.06 intended for use in the manufacture of utensils has also been fully
exempted.
(f)
Aluminium circles have been subjected to an excise duty of Rs. 2000 per
MT irrespective of whether it is used captively or otherwise. This duty rate
will apply if no input duty credit is taken.
It
will be noted that the exemption to circles of copper and aluminium, used
captively for manufacture of utensils has currently been withdrawn.
The
above exemptions will apply only to units other than primary producers who
manufacture aluminium from ores and aluminium concentrates.
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