| Date: |
17-04-1995
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| Notification No: |
Central Excise Circular No 117/1995
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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: |
Regarding duty ability of car matting made from non-woven materials in roll form
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Regarding duty ability of car matting made from non-woven materials in
roll form
Circular
No. 117
dated 17th April 1995
I
am directed to refer to Board's Circular No. 5/ Floor-Coverings/ 87 (F.No.
57/1/87-CX.1) dated 23.6.87 wherein it was clarified that duty liability would
not be attracted on car matting made from duty paid non-woven material in roll
form. It has been brought to the notice of the Board that this position may not
holder goods after extension of Modvat to these items.
2.
The matter has been re-examined by the Board The Board is of the view
that there are two clear stages i.e. non-woven material emerging as excisable
and dutiable goods in roll from and finally car matting emerging as different
final products. Duty has to be charged at both stages as the processes of
conversion of non-woven material in roll form into car matting involves the
processes of cutting, stitching, sizing etc. and both products are known
differently in the market.
3.
It is, therefore, clarified that appropriate Central Excise Duty is
payable on floor coverings in the form of non-woven material in rolls when
cleared from the factory, as well as, on the car matting subsequently
manufactured out of duty paid floor coverings in the form of non-woven material
in rolls.
4.
The Board's earlier Circular No. 5/ Floor Coverings/ 87(F.No.
57/1/87-CX.1) dated 23.6.87 may be treated as withdrawn and assessments may be
finalized in terms of the revised instructions.
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