Tolerance limit to be prescribed in case of processed fabrics as per Notification Nos. 4/88 and 5/88, dated 19-1-1988 - Suggestion regarding - Central Excise - 60/88

Tolerance limit to be prescribed in case of processed fabrics as per Notification Nos. 4/88 and 5/88, dated 19-1-1988 - Suggestion regarding Circular No. 60/88 Dated 21-11-1988 [From F. No. 261 / 52/5/88/CX.8] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Tolerance limit to be prescribed in case of processed fabrics as per Notification Nos. 4/88 and 5/88, dated 19-1-1988 - Suggestion regarding. I am directed to invite your attention to Notification No. 4/88 and 5/88, dated 19-1-88 whereby the central excise duty on man-made fabrics is based on the weight, value and width of the fabrics per square metre. It has been brought to the notice of the Board by one of the Collectors that assessees are filing declarations of weight, value and width of grey man- made fabrics along with the classification lists and price lists. It is obvious that the weight and width of the grey fabrics will undergo a change during processing due to use of starch dyes, colour chemicals etc. thereby leading to a discrepancy between the weight and width of grey fabrics declared by the assessee vis-a-vis the actual weight of the fabrics obtained after processing. It has therefore been recommended that a tolerance limit be fixed so that there could not be any problems during assessment of processed fabrics. Practice prevailing in the matter as well as views of all Collectors were called for in the matter. It has been observed that in most of the Collectorates, in classification lists and price lists actual weight and width of fabrics obtained after processing are being declared and not of grey man-made fabrics. Since under notifications aforesaid, effective rates of duties have been fixed for processed man-made fabrics, declarations in classification and price lists of weight and width should be only of processed man-made fabrics and not of the grey man-made fabrics. It has therefore been decided by the Board that actual weight and width of the processed man-made fabrics should be declared in the classification lists and price lists and assessment should be made accordingly. There is no need to prescribe any tolerance limit. This disposes of Collector of Central Excise Vadodara's letter No. IV Chap. 54(19)2/88-MP dated 4-2-1988. The above instructions may be brought to the notice of the field formations.