Central Excise - Approval of classification list of M/s. Bhor Industries Ltd. for their product - PVC Adhesive tapes - Question regarding - Central Excise - 27/89

Central Excise - Approval of classification list of M/s. Bhor Industries Ltd. for their product - PVC Adhesive tapes - Question regarding Circular No. 27/89 Dated 25-4-1989 [From F. No. 93/21/89-CX.3] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Approval of classification list of M/s. Bhor Industries Ltd. for their product - PVC Adhesive tapes - Question regarding. This is a reference to letter F.No.V-TI(30)31/88/114 dated the 4th January, 1989 on the subject mentioned above and to say that the matter has been got examined in consultation with the Dy. Chief Chemist, CRCL, New Delhi, a copy of whose opinion is enclosed. The opinion of the Dy. Chief Chemist has been accepted by the Board. You may, therefore, decide the case accordingly. COPY OFFICE OF THE COLLECTOR OF CENTRAL EXCISE : BOMBAY II: PIRAMAL CHAMBERS: 9TH FLOOR: JIJIBHOY LANE : LALBAUG: PAREL : BOMBAY-400012 F. No. V-TU(30)31/88/114 Bombay , the 4th January, 1989 To, The Secretary, Central Board of Excise and Customs, New Delhi. Subject: Approval of classification list of M/s. Bhor Industries Ltd. for their product - PVC Adhesive Tapes - Question regarding. Sir, A unit in this Collectorate, namely, M/s. Bhor Industries Ltd. are engaged in the manufacture of PVC Adhesive Tapes (Anti-corrosion Tape) having different width of 4 cm, 5 cms, 60 cms, 100 cms, 110 cms. Assessee has sought the classification of these products under sub-heading No. 3919.00 and claimed effective rate of duty @ 25% Adv. in terms of noification No. 340/86-C.E., dated 11-6-1986. Although, Notification No.340/86 is now rescinded by Notification No. 129/88-C.E., dated 1-3-1988, rate of duty is still 25% Adv. under Sr. No. 28(i) of Notification No. 53/88-C.E., dated 1-3-1988. 2. Since the tapes and sheets are neither defined in H.S.N. nor in tariff, the problem arose whether these product having width of 60cms, 100cms, or 110 cms are to be treated as tapes or sheets and whether C.E. duty @ 25% Adv. is to be charged as per Sr. No. 28(i) of the Notification. No. 53/88-C.E., as tapes or at 40% Adv. as per Sr. No. 28(ii) of the Notification. As the matter was not free from doubt, same was referred to by the divisional Asstt. Collector to Deputy Chief Chemist, Bombay. It has been clarified by the Deputy Chief Chemist, Bombay, vide their letter dated 23-9-1988 (copy enclosed) that according to Encyclopedia of Polymer "Science and Technology" a tape is a terms used for relatively, narrows films of width 1/16" to 4" which would suggest that narrow films in continuous length having a width of 100mm and below but more than 2mm are to be considered as tapes. Moreover tapes (e.g. adhesive tapes, video tapes ) are in the nature of finished product ready for use for definite purpose as against sheets which are general purpose articles which are to be fabricated to an article to suit various requirement and application. The Deputy Chief Chemist has referred to Board's letter F. No. 93/11/85-CX.3 (T.A.N. 51/85) dated 20-11-1985 regarding the classification of plastic strappings. 3. The matter has also been examined at Collectorate level. It is observed that Board's instruction dated 20-11-1985 on classification of plastic strappings referred to by Deputy Chief Chemist are not applicable in this case. It is also true that the nominal width of tape has not been indicated in H.S.N. or tariff. In the circumstances, this office is of the opinion that, Department will have to either stick to the dimension as given in Encyclopedia of Polymer Science Technology as brought out by the Deputy Chief Chemist, Bombay, or go by the trade practice. In case trade practice has to be relied upon, it is possible that, to evade duty that trade may change the practice of invoicing describing sheets as tapes only. 4. As the matter is not free from doubt, same is referred to Board, for clarification. Board may like to prescribe same definite maximum width for the tapes if deemed fit. Pending clarification, field formations have been directed to resort to provisional assessment. Yours faithfully, Sd/- (SURJIT SINGH) Collector Central Excise : Bombay-II. COPY The file has been referred to this office to prescribe the maximum limit of dimensions to qualify for the term "tape". In general, tape has been described as a ribbon like material. In Encyclopedia of Polymer Science Technology, Vol. 6, it is stated that tape is a terms used for relatively narrow films i.e. those from 1/16 to 4 inches in width. I could not lay hands on any reference other than the above, where a maximum limit has been laid done for tape. Under the circumstances, there is no alternative but to follow the dimensions prescribed in the Encyclopoedia of Polymer Science and Technology, for tape, to decide the case. Sd/- (DR. BADRI PRASAD) Deputy Chief Chemist 29th March, 1989 .