CE-Classification of Used Release Paper-Regarding - Central Excise - 359/75/97-CX

Circular No. 359/75/97-CX dated 28/11/97 Government of India Ministry of Finance Department of Revenue (Central Board of Excise Customs), New Delhi Subject: CE-Classification of Used Release Paper-Regarding.... I am directed to say that doubts have been raised regarding the correct classification and duty liability of used release paper (paper coated with polymers). It is stated that assessee manufacturing coated fabrics/ PVC leather cloth/ rexine use release paper in their manufacturing process and after repeated usage it loses the releasing effect and becomes no more useful. 2. The matter has been examined by the Board. It has been observed that uniform practice of assessment does not exist in this regard. In some Commissionerates, no duty is being paid on such used release paper as it is thrown away as waste paper, whereas some Commissionerates are of the view that the waste paper (i.e. used release paper) comes into existence from the processing of inputs and as such processions of Rule 57F IB(a) will be applicable and it is classifiable under Chapter Heading No. 47.02 chargeable to duty accordingly. 3.Board is of the view that such waste paper (i.e. used release paper) is rightly classifiable under Heading No. 47.02 of the Tariff and accordingly chargeable to duty on its value when removed from the factory keeping in view the provisions of sub-rules 18 and 19 or Rule 57F. 4. Trade and field formations may be advised suitably. Kindly acknowledge the receipt of this Circular. Sd/- (S.C.Bhatia) Under Secretary to the Govt. of India