Central Excise - Chapter 39 - Dispute regarding classification of 'Top Skin', 'Bottom Skin', 'Side Skin' and 'Shreddings' of Polyurethane foam - Central Excise - 22/89

Central Excise - Chapter 39 - Dispute regarding classification of 'Top Skin', 'Bottom Skin', 'Side Skin' and 'Shreddings' of Polyurethane foam Circular No. 22/89 Dated 12-4-1989 [From F. No. 93/46/88-CX.3] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Chapter 39 - Dispute regarding classification of 'Top Skin', 'Bottom Skin', 'Side Skin' and 'Shreddings' of Polyurethane foam. Attention is invited to the instructions contained in Ministry's Telex F. No. 93/16/87-CX.3, dated 28-12-1987 on the classification of polyurethane foam products commonly known as 'top skin', 'bottom skin', 'side skin' and 'shreddings' and to say that a doubt had been raised as to whether the goods in question should be classified under heading No. 39.15 as 'Waste, pairings and scrap' of plastic's. 2. The matter came up for discussion at the North Zone Tariff-Cum-General Conference of the Collectors of Central Excise, held at Agra on the 8th and 9th February, 1989, CCE, Chandigarh, the sponsoring Collector, stated that the products commonly known as 'top skin', 'bottom skin', 'side skin', and 'shreddings' of polyurethane foam have been classified under heading No. 39.21 of the CET as flexible plastic sheets by virtue of the Ministry's instructions contained in their telex F. No. 93/16/87-CX.3, dated 28-12-1987. However, such goods should have been classified under heading No. 39.15 of the CET as 'Parings, waste, scrap' etc. of plastics. He invited the attention of the Conference to the CEGAT Order 833/87-C, dated 20-10-1987 which has classified such goods under heading No. 39.15 as 'waste, paring and scrap' of plastics. This Order has been accepted by the Board with the result that the principles contained in such order have become finals for the Department since the Department has not filed any appeal against this Order before the Supreme Court. Attention was also invited to the instructions contained in Board's letter F. No. 390/27/88-AU(AND), dated 18-3-1988 (Circular No. 3/88-AU) which clarified that where decisions of Collectors (Appeals), CEGAT, High Courts, Supreme Court on points raised by a particular litigant are accepted by the Department, the lower authorities should apply and implement them in respect of other assessees also. The Conference was unanimously of the view that the goods in question would be appropriately classifiable under heading No. 39.15 of the CET as 'waste, parings, scraps' etc. of plastics and that the Board's earlier instructions contained in their telex F. No. 93/16/87-CX.3, dated 28-12-1987 should be revised accordingly. The Deputy Chief Chemist, CRCL, who was present at the Conference, also endorsed this view. 3. The Board agrees with the above view of the Conference and accordingly clarifies that polyurethane foam products commonly known as 'top skin', 'bottom skin', 'side skin' and 'shreddings' would be appropriately classifiable under heading No. 39.15 of the CET as 'waste, parings and scraps' of plastic. The instructions contained in Ministry's Telex F. No. 93/16/87-CX.3, dated 28-12-1987 may be treated to have been withdrawn. 4. The above guidelines may he brought to the notice of lower field formations and the trade interests may also be suitably advised. 5. All pending assessments may be finalised on the above basis. (This disposes of CCE, Chandigarh's F. No. V(Ch. 39) 30/1/T.U./ 88/34445 , dated 9-8-1988).