Assessment of Veneers, Plywood, etc. - Regarding - Central Excise - 82/88

Assessment of Veneers, Plywood, etc. - Regarding Circular No. 82/88 Dated 14-12-1988 [From F. No. 82/88-CX.6] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Assessment of Veneers, Plywood, etc. - Regarding. Clarifications have been sought by some collectors regarding the manner in which Veneers/Plywood etc. are to be recorded in the RG.I. 2. It appears that in some Collectorates a practice has developed, of allowing a certain amount of notional margin before recording of production of Veneers, to allow for shrinkage and trimming margin. The local Accounted General (Audit) party has objected to this procedure of accounting of Veneers as it result in short assessment of duty of excise. 3. This point was sponsored by Collector of Central Excise, Belgaum and was discussed at the South Zone Collectorates' Conference held at Bangalore on 4th and 5th October, 1988 (procedural Point No. 4.2 refers). After due deliberations at the Conference it was felt that the Veneers should be accounted in the RG.I on the basis of the actual width and no notional deductions/shrinkage should be allowed. 4. The matter has been further examined in the Board office. The Board agrees with the view of the Conference. There is no legal justification for allowing any notional deduction as trimming margin. Since, there is some shrinkage in respect of veneers in the process of drying, the RG.I stage for veneers should be fixed as that after drying. 5. As regards fixing the RG.I stage for plywood, Board's instruction F.No. 9/15/63-C.VII dated 9-11-1964 (Circular No. 9/Plywood/64) would continue to apply. 6. Veneers are presently classifiable under heading 4404.00 and Plywood under heading 44.08 and accordingly they have to be accounted for separately in the R.G.I register.