Exemption of excise duty on Galvanised Iron Buckets in terms of Notification No. 181/88-C.E., dated 13-5-1988 - Clarification - Regarding - Central Excise - 29/90-CX

Exemption of excise duty on Galvanised Iron Buckets in terms of Notification No. 181/88-C.E., dated 13-5-1988 - Clarification - Regarding Circular No. 29/90-CX. Dated 6-8-1990 [From F. No. 139/29/90-CX.4] Government of India Central Board of Excise Customs New Delhi Subject : Exemption of excise duty on Galvanised Iron Buckets in terms of Notification No. 181/88-C.E., dated 13-5-1988 - Clarification - Regarding. Doubts have been rasied regarding interpretation of the term 'Galvanised Iron Buckets' as appearing in Notification No. 181/88-C.E., dated 13-5-1988 and earlier Notifications 230/86, dated 3-4-1986 and 102/88-C.E., dated 1-3-1988, whether the above expression "Galvanised Iron Buckets" covers only the buckets made out of galvanised iron or includes those buckets made out of galvanised mild steel sheets. 2. Galvanised iron buckets were exempted vide Notification No. 230/86, dated 3-4-1986 and subsequently vide Notification No. 102/88 and 181/88. It is contended by the Trade, that iron hot being malleable and rollable into sheets, iron buckets cannot be, made (except by casting in foundry). The buckets being manufactured not sold as G.I. buckets are made from steel sheets only. These, are covered by the exemption under Notification No. 230/86 (subsequently 102/88 181/88). On the other hand a view has been expressed that what is manufactured and being sold in the market as galvanised iron buckets are actually steel buckets made from mild steel sheets and its cutting (HR/CR sheets and cuttings etc.) and as such these are not covered by the exemption granted under Notification No. 181/88 and earlier Notification No. 230/86 and 102/88. 3. The matter has been examined. Mild Steel sheets and its cuttings (HR/CR sheets and cuttings etc.) are used for the manufacture of galvanised buckets which are sold in the market as galvanised iron buckets. Reference to "An Encyclopaedia of Iron and Steel Industry" compiled by A.K. Oshorna indicates that galvanised iron is described as 'mild steel sheet coated with zinc by glavanisation in order to protect it from corrosion. Therefore, the expression glavanised iron buckets would cover buckets made from mild steel sheets coated with zinc by glavanisation and the fact that they are made from HS sheets and its cuttings can not be taken to deny the benefit of exemption under Notification No. 181/88 and the earlier Notification No. 230/86 and 102/80. 4. Accordingly, it is clarified that the use of mild steel sheets and its cuttings in the manufacture of galvanised iron buckets can not be taken to deny the benefits of exemption under Notification No. 181/88 and earlier Notification No. 230/86 and 102/88. 5. Field formations and Trade may be informed suitably.