Assessment of Saggars and Moulds - Regarding - Central Excise - 14/89

Assessment of Saggars and Moulds - Regarding Circular No. 14/89 Dated 11-4-1989 [From F. No. 133/2/88-CX.4] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Assessment of Saggars and Moulds - Regarding. Doubt has been raised as to whether exemption under Notification No. 217/86-C.E., dated 2-4-1986 would be available to saggars and moulds meant for captive use. The issue was discussed in the North Zone Tariff Conference held at Agra on 6-8/2/89. It was observed that saggars and moulds cannot be treated as 'inputs' in view of the definition of 'inputs' given in Notification 217/86, as amended, since such goods are nothing but tools or appliances used for the production of goods. The Conference, therefore, decided that the exemption under Notification 217/86-CE is not available to saggars and moulds in view of the definition of 'inputs' given in the said Notification. Board agrees with the view of the Conference and accordingly it is clarified the exemption under Notification 217/86-CE is not available to saggars and moulds. Field formations may be informed accordingly.