|
Regarding Central Excise - Excisability of plastic plaiting material
(PPM) used for manufacture of plastic mats/ satranji
Circular
No. 577 dated 11th June 2001
It
has been brought to the notice of the Board that field formations are demanding
duty on the plastic plaiting material (small capicillary tubes) used for
manufacture of plastic mats/ satranji classifying them under heading 3926.90 or
heading 39.17 of the Central Excise Tariff.
2.
The matter has been examined in the Board. The plastic tubes are
manufactured out of polypropylene granules. These are fed into extruder to
obtain a product having a tube like appearance that is plaited/weaved to produce
mats called satranji. The PPM are approximately of 1.5 mm diameter. These tubes
are cut to different sizes depending upon the type of mat to be reproduced �
usually lengths of 2 or 4 feet are only taken. Subsequently, the tubes are put
on the looms and the mats are woven.
3.
To become �goods� an article must be something which can ordinarily
come to the market to be bought and sold and is known to the market. The units
engaged in the manufacture of plastic mats have their own extruders for
conversion of plastic granules into PPM. The product is captively consumed and
is not available in the market for sale. Further, it is not capable of being
marketed because it loses shape if not weaved or plaited immediately. Therefore,
the product is neither marketed nor considered to be marketable in the
commercial parlance.
4.
Accordingly, it is clarified that plastic plaiting material (tubes) used
for manufacture of plastic mats, not being capable of being bought and sold in
the market in the normal course of trade, is not an excisable product and no
duty is therefore, leviable on such plastic plaiting material (tubes) used for
manufacture of plastic Mats.
5.
Trade and field formations may be suitably informed.
6.
Receipt of this Circular may please be acknowledged.
|