Applicability of Notification No. 202/88-C.E., dated 20-5-1988 as amended to Galvanised - Pipes and Tubes of Iron and Steel made from HR Coils - Clarification regarding - Central Excise - 25/90-CX.4

Applicability of Notification No. 202/88-C.E., dated 20-5-1988 as amended to Galvanised - Pipes and Tubes of Iron and Steel made from HR Coils - Clarification regarding Circular No. 25/90-CX.4 Dated 11-7-1990 [From F.No. 139/224/90-CX.4] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Applicability of Notification No. 202/88-C.E., dated 20-5-1988 as amended to Galvanised - Pipes and Tubes of Iron and Steel made from HR Coils - Clarification regarding. Doubts have been raised regarding applicability of Notification No. 202/88-C.E., dated 20-5-1988 as amended to galvanised pipes and tubes of iron and steel made from HR coils. 2. Galvanised pipes and tubes are reportedly made from hot rolled steel coils, sheets and strips, which are cut to required sizes and then made round and welded. These (pipes and tubes) are then cleaned in chemical solution and are galvanised (with the help of Zinc Solution by electrolysis process). Now, a doubt was expressed that benefit of Notification No. 202/88-C.E., dated 20-5-1988 would not be extended to such galvanised pipes and tubes since these are properly regarded as galvanised forms specified at Sl.No. 4 of the table but which are not made from the inputs specified in Sl.No. 4 of the table annexed to the Notification, and also because zinc is not a specified input as mentioned in the Notification. 3. The issue has been discussed in the North Zone Tariff-cum-General Conference held at Manali on 7th and 8th June, 1990. The Conference observed that the benefit of Notification No. 202/88-C.E., dated 20-5-1988 would be admissible on steel pipes and tubes vide Sl. No. 3 of the said Notification, because, what were first converted were steel pipes and tubes from hot rolled coils which were specified inputs as against Sl. No. 3 of the said Notification. Such pipes and tubes would remain as pipes and tubes even after galvanisation, since, no different commodity has emerged in the process of galvanisation, in view of the Supreme Court's judgment in case of Gujarat Steel Tubes Ltd. v. State of Kerala and Others (1989) (23) (ECR-161-SC). 4. The Conference accordingly recommended that benefit of Notification No. 202/88-C.E. would be admissible to galvanised pipes and tubes made from HR coils. 5. Board has accepted the recommendation of the Conference that the benefit of Notification No. 202/88-C.E., dated 20-5-1988 as amended, would be applicable to galvanised pipes and tubes of iron and steel made from HR coils. Attention is also drawn to Heading 7306.90 which does not distinguish between galvanised and non-galvanised pipes and tubes and consequently galvanised pipes and tubes also would be covered by the expression 'tubes pipes' in Col. 3 of the table annexed to the Notification. It is, therefore, clarified that the benefit of exemption under Notification No. 202/88-C.E., can not be denied to galvanised pipes and tubes made from specified inputs of Col. No. 2 and Sl. No. 3 of the Table. 6. All pending assessments may be finalised accordingly. 7. Field formations and Trade may be suitably informed.