Central Excise - Applicability of exemption Notification No. 53/88-C.E., dated 1-3-1988 to 'Coloured Plastic Films' - Clarification regarding - Central Excise - 28/90-CX.3

Central Excise - Applicability of exemption Notification No. 53/88-C.E., dated 1-3-1988 to 'Coloured Plastic Films' - Clarification regarding Circular No. 28/90-CX.3 Dated 15-6-1990 [From F. No. 112/10/90-CX.3] Government of India Central Board of Excise Customs New Delhi Subject : Central Excise - Applicability of exemption Notification No. 53/88-C.E., dated 1-3-1988 to 'Coloured Plastic Films' - Clarification regarding. Doubts have been expressed regarding the availability of exemption in terms of Notification No. 53/88-C.E., dated 1-3-1988 to plastic films falling under sub-heading No. 3920.32 notwithstanding the fact that a small quantity of colouring material falling under sub-heading No. 3206.19 is used in the manufacture of such films. 2. The matter has been discussed in the First East Zone Tariff Conference held at Shillong on 25th and 26th April, 1990. In terms of Notification No. 53/88, dated 1-3-1988 plastic films falling under Heading 39.02 attract an effective rate of 25% ad valorem, provided such films are produced out of duty paid goods falling under Heading No. 39.01 to 39.15 of CET. It was reported that the essential inputs for the manufacture of such films fall under sub-heading Nos. 39.01 to 39.15 only. A small quantity of colouring material known as 'mester batch' falling under sub-heading 3206.19 is used only to impart colour to the plastic films. The Conference took note of the Explanatory Notes under Chapter 39 of HSN (Page-553) according to which plastic in primary forms may contain other material such as plasticisers, stabilisers, fillers and colouring matter chiefly intended to give the finished products special physical properties or desirable characterstics. Therefore, the Conference came to the conclusion that addition of colouring material should not come in the way of grant of exemption to coloured plastic films in terms of Notification No. 53/88. 3. The Board agrees with the above views of the Collectors' Conference. The coloured plastic films falling under sub-heading No. 3920.32 would be entitled to the exemption in terms of Notification No. 53/88-C.E., dated 1-3-1988 notwithstanding the fact that colouring material falling under sub-heading No. 3206.19 is also used in the manufacture of such films. 4. The above clarification may be brought to the notice of the lower field formations and the trade interests may also be suitably advised. 5. All pending assessments may be finalised on the above basis.