Set-off of duty on the quantity of cut tobacco used in the manufacture of machine rolled cigarettes permitted - Central Excise - 43/90-CX.8

Set-off of duty on the quantity of cut tobacco used in the manufacture of machine rolled cigarettes permitted Circular No. 43/90-CX.8 Dated 6-7-1990 [From F. No. 261/24/4/88-CX.8] Government of India Central Board of Excise Customs New Delhi Subject : Set-off of duty on the quantity of cut-tobacco used in the manufacture of machine rolled cigarettes - Instructions regarding. Petitions have been received in the Board's office representing that set- off of duty on cut tobacco is being denied in certain Collectorates by restricting it only to that quantity of cut tobacco which has actually been contained in the cigarettes. The matter has been examined by the Board. Attention is invited to para 6.1 of Annexure II of Board's F. No. 201/3/W/77 CX.6, dated 1-4-1981 whereby it has been clarified that set-off is to be allowed on that quantity of duty paid excisable goods which have been issued for the manufacture of finished excisable goods and is not to be confined only to the duty on that quantity which has been actually contained in the finished excisable goods. In view of this set-off of duty can be permitted on that quantity of cut tobacco which has been issued for the manufacture of cigarettes irrespective of whether some of it is contained in the waste. However, duty should be charged on the waste which has arisen during the process of manufacture in terms of Para 6.2 of Annexure II to Board's letter aforesaid. Field formations may be informed suitably. All pending cases may be decided in the light of the above instructions.