Photographic films obtained by process of cutting/slitting and perforation of jumbo rolls of photographic films - Excisability - Central Excise - 13/92-CX.3

Photographic films obtained by process of cutting/slitting and perforation of jumbo rolls of photographic films - Excisability Circular No. 13/92-CX.3 Dated 28-12-1992 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Photographic films obtained by process of cutting/slitting and perforation of jumbo rolls of photographic films — Excisability. A doubt has been raised regarding the excisability of photographic films obtained by the process of cutting, slitting and perforation of jumbo rolls of photographic films. 2. The matter has been examined. The manufacturing process, employed for obtaining photographic films is reported to be as under :- (i) Jumbo roll is stored in conditioned room and moved on Master Roll Carrier to slitting machine; (ii) On slitting machine, jumbo roll is placed on Slit Roll Lifter and is slit into 35 mm. width slit rolls, by using Slitter machine. These slit rolls of 35 mm. width are stored in Slit Roll Magazine; and (iii) These slit roll magazines are fed to Inner Packaging Machine. This machine performs the following several operations - (a) Perforate both sides of slit film. (b) Latent image printing of frame number, trade name and bar codes on the side of slit film. (c) Trim cut the film. (d) Wind-on spool. (e) Out-on spool. (f) Put the spool in patron/cartridge which is stored in cartridge container attached to the machine and put the cap. 3. In this connection, attention is drawn to the Board's instructions contained in F. No. 119/1/88-CX.3, dated 24-2-1989 (Circular No. 15/89) regarding the excisability of cinematographic films obtained out of cutting, slitting and perforation of imported jumbo rolls. In the case of cinematographic films, the Board observed that apart from the process of cutting and slitting, perforation is another process which is undertaken for manufacturing. Perforation is necessary for the film to be held and run both in the movie cameras and in the movie projector. Perforation also had a great functional value in sound recording. Unless, therefore, the process of cutting, slitting and perforation were undertaken, the jumbo roll was incapable of being used as cinematographic film. Moreover, in the form and condition imported, the jumbo roll was only an intermediate product for manufacture of finished cinematographic film and not cinematographic film itself. In view of these facts, the Board decided that cutting, slitting and perforation of the jumbo rolls into finished cinematographic film ready for use would amount to manufacture. Thus, the earlier instructions in this regard were withdrawn. ' 4. It would be seen that the process of obtaining photographic films from jumbo rolls is more or less similar to the process of obtaining cinematographic films from jumbo rolls. Hence, the ratio of Board's instructions in respect of cinematographic films can be applied in deciding the excisability of photographic film. Moreover, it is also observed from the manufacturing process that the method of obtaining photographic films from jumbo rolls of photographic films is quite elaborate and involves a lot of operations resulting in a product with a distinct name and character. Therefore, there is no reason as to why the process of cutting, slitting and perforation of jumbo rolls of photographic films should not be taken as a process amounting to manufacture. Though jumbo rolls for photographic films and photographic films so obtained by cutting, slitting and perforation of said jumbo rolls fall under same tariff entry (3702.90), it would not make any difference in so far as the excisability is concerned. Hence, the photographic films obtained by the process of cutting, slitting and perforation of jumbo rolls of photographic films would be treated as excisable goods. This decision will also be in conformity with the Board's decision in respect of cinematographic films as referred to in para-3. 5. In view of the foregoing, it is clarified that photographic films obtained by process of cutting, slitting and perforation of jumbo rolls of photographic films will be treated as excisable goods, and shall be leviable to appropriate Central Excise duty.