Ice-cream - Valuation of on the basis of value declared on each pack [Chapter 21] - Central Excise - 16/93-CX.6

Ice-cream - Valuation of on the basis of value declared on each pack [Chapter 21] Circular No. 16/93-CX.6 Dated 4-11-1993 Government of India Central Board of Excise Customs New Delhi Subject : Ice-cream - Valuation of on the basis of value declared on each pack [Chapter 21] All-India Ice-Cream Manufacturers' Association have represented that Ice-cream after undergoing an elaborate manufacturing process, is manually filled into unit containers. There are two inter-related problems. (a) Since Ice-cream is generally filled manually in the cups, it is not possible to fill in the precise quantity as stated on the cups (b) During the process of ice-cream manufacture, air is injected into ice-cream mix to make ice-cream fluffy. This air gradually escapes from ice-cream as a result of which ice-cream gradually settles in the cup. To compensate the loss, the manufacturer fills the cup a bit more than the stated quantity so that the consumer gets the quantity stated on the cups. 2. The issue has been examined in consultation with Directorate General of Inspection (Customs Central Excise), and it has been decided that the following tolerance limits may be fixed : (i) For cups 100 ml..... 5% (ii) For cups between 100 ml. and 500 ml. ...3% (iii) For cups/packs above 500 ml. ... 2% The idea is that error in filling larger cups/packs should be less than the error in filling smaller cups/packs.