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Regarding all industry rate of Duty Drawback on Fabrics, Tarpaulins and
other Made-up Articles made of Plastic materials -SS No. 63.01 and 63.02 of the
Drawback Table
Circular No. 79 dated 24th
November 1999
The Plastics
Export Promotion Council on behalf of various exporters has represented that the
Customs & Central Excise field formations are denying drawback to the
above-mentioned articles under SS No. 63.01 and SS No. 63.02. They are, instead
classifying these articles under Chapter 39 of the Drawback Table as General
Articles of Plastic and allowing drawback according to the constituent material.
It may be
recalled that the Central Board of Excise & Customs, in the wake of the
Hon'ble M.P. High Court's Order in the case of M/s. Raj Packwell (1990 (50) EL
T201) had issued directions under section 37-8 of the Central Excise Act, 1944
that HDPE/ Polypropylene tapes and strips of width not exceeding 5mm and sacks
made therefrom shall be classified under Chapter 39 of the Central Excise
Tariff. It was also directed that HDPE/ PP products made from HDPE/ PP strips
and tapes of a width not exceeding 5mm, which are lossely described as fabrics
or otherwise, woven from such strips/ tapes shall also be classified under
Chapter 39 of the Central Excise Tariff. The Hon'ble Supreme Court vide its
order dated 23/ 8/ 96 in the case of Collector v. Ravi Oberoi (Director) M/ s.
Oberoi Enterprises, has also followed the above mentioned judgement of the
Hon� able M.P. High Court.
In this context,
it is clarified that the All Industry Rate of Drawback for fabrics, Tarpaulins
and other made up articles made of plastic materials (other than reinforced
plastic articles) was fixed in 1997 on the basis of specific data in respect of
the inputs used in their manufacture and the duty incidence thereon. The
drawback rate for these items was determined irrespective of whether the item
would be classifiable under Chapter 39 or Chapter 63 of the Drawback Table. For
the sake of harmony and in terms of the above-mentioned judgments/ Board's
directions, these items were required to be mentioned in Chapter 39 as well as
Chapter 63 of the Drawback Table. However, due to inadvertence, the goods have
been mentioned only in Chapter 63 of the Drawback Table instead of finding
mention in both Chapter 39 and 63.
In this regard,
it is also clarified that in terms of proviso to General Note 10 to the
Drawback, Table, unless the context otherwise requires, the scope .of the
specified export products against a Sub-Serial No. in the Drawback Table is the
same as such specified goods would have under the First Schedule to the Customs
Tariff Act, 1975. It is, however, emphasised that in the case of these items,
the context requires otherwise as the intention of the Govt. is to give drawback
at the rate specified under SS Nos. 63.01 and 63.02, irrespective of the fact
whether these are classifiable under Chapter 39 or 63 of the Drawback Table. The
drawback claims of the parties may be settled accordingly.
This may be
brought to the notice of the staff concerned and the Trade through issuance of
suitable Standing Order and Public Notice. Also kindly acknowledge the receipt
of this Circular.
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