CE-MMSF - Fixing of percentage of waste for Polyester Staple Fibre Industry - Regarding - Central Excise - 19/MMSF/90-CX.1

CE-MMSF - Fixing of percentage of waste for Polyester Staple Fibre Industry - Regarding Circular No. 19/MMSF/90-CX.1 Dated 31-7-1990 [From F. No. 55/8/90-CX.1] Government of India Central Board of Excise Customs New Delhi Subject : CE-MMSF - Fixing of percentage of waste for Polyester Staple Fibre Industry - Regarding. The issue of fixing a percentage for the purpose of waste accruing in the process of manufacture of Polyester Staple Fibre was examined in the Board. It was represented by the trade that since, no fixed percentage of waste is stipulated under the Central Excises and Salt Act, 1944 there is always a dispute with the Central Excise Department. They further pointed out that the waste produced depends upon the capacity utilisation and type of process etc. 2. Central Excise Act or Rules do not fix any percentage for the generation of waste in the Polyester Staple Fibre Industry. However, the waste has been specifically included and defined in the CET. From physical verification, it can be ascertained whether a particular fibre can be cleared as a waste or good fibre. Guidelines in this regard have already been issued vide Board's Circular No. 20/MMSF/89-CX.I from F. No. 55/11/89-CX.1, dated 18th December 1989. In the said circular, it has also been highlighted that in case of doubt necessary samples could also be drawn for ascertaining whether a particular lot is waste or not. So, on the basis of physical verification, waste can always be ascertained and cleared after paying duty as wastes. 3. The question whether a consignment is made up of waste or not is one of the fact which can be verified physically by the assessing Officer. As the units manufacturing fibres are under physical control, there should be no difficulty in verifying each lot. 4. It has been decided by the Board, that it may not be desirable to fix any maximum percentage for waste. Each case should be examined on merit irrespective of the percentage. 5. The Field formations may be informed accordingly.