| Date: |
13-12-1996
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| Notification No: |
Customs Circular No 63/1996
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| Issuing Authority: |
Indian Customs
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| Type: |
Circular
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| File No: |
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| Subject: |
Disposal of waste arising during the re-process of jobbing on material imported under Ntfn. No. 81/ 95-Cus dated. 31.3.95
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Disposal of waste arising during the re-process of jobbing on material
imported under Ntfn. No. 81/ 95-Cus dated. 31.3.95
Circular No. 63 dated 13th
December 1996
Notification No.
81/ 95-Customs dated 31.3.95 requires the waste including the resultant product
to be re-exported after the inputs imported under the benefit of said
notification have been subjected to the jobbing operation. Some representations
have been received from the trade circles expressing difficulty in re- exporting
the waste along with the resultant product as according to them re-export of the
waste which has no commercial value is neither acceptable by the supplier of the
material abroad nor viable to be retained by them and as such a request has been
made to permit destruction of the waste arising during the process of jobbing.
2. The
matter has been examined in the light of amendment of Notification No. 81/95-Cus
under Ntfn. No. 35/96-Cus dated 11.7.96 according to which the jobbing
operations were required to be carried out in accordance with provisions of
sections of section 65 of the Customs Act, 1962. It is stated that there are
inbuilt provisions under section 65(2) of the Customs Act, 1962 which provides
the manner the waste of refuse can be dealt with or destroyed. It is further
stated in this regard that the provisions of section 65 were introduced under
Ntfn. No. 35/96-Cus with effect from 11.7.96 and continued till its amendment by
Ntfn. No. 87/ 96-Cus dated. 18.11.96 according to which the old position prior
to 11.7.96 was restored i.e. the jobbing operations were no longer required to
be undertaken in accordance with Section 65 of the Customs Act, 1962. As far as
the destruction of waste in respect of imports during the period 11.7.96 to
17.11.96 is concerned, there should not be any difficulty in permitting the
destruction, as the same was required to be done in accordance with provision of
Section 35(2) of the Act. The problem, therefore, is only with regard to the
imports prior to 11.7.96 and after 17.11.96 under Ntfn. No. 81/ 95-Cus.
3. The
matter has been considered by the Ministry and it has been decided that the
waste way be allowed to be destroyed under the supervision of the Central Excise
authorities only in respect of those types of wastes which have no commercial
value. While permitting the destruction, it may be ensured that the quantum of
wastage so destroyed is genuine and that no part of the finished goods in the
guise of wastage has been diverted to the local market.
4. Commissionerate
is requested to issue suitable Public Notice/ Standing Order for information of
trade/ departmental officers.
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