Inclusion of cost of visa cards, visa files and folders in the value of filing cabinets regarding - Central Excise - 29/88-CX.1

Inclusion of cost of visa cards, visa files and folders in the value of filing cabinets regarding Circular No. 29/88-CX.1 Dated 18-11-1988 [From F. No. 6/59/87-CX.1] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Inclusion of cost of visa cards, visa files and folders in the value of filing cabinets regarding. A doubt has arisen whether the cost of (i) folder and visa files; (ii) visa cards and (iii) instadex folders purchased from outside and invoiced separately and used in the manufacture of filing cabinets, visadex, cabinets and storewells should be added to arrive at the assessable value of the said final products. It is reported that a Company is manufacturing filing cabinets, and visadex cabinets falling under sub-heading No. 8304.11 and storewells falling under sub-heading No. 9403.00. 2. As per requirements, the customers are supplied are below mentioned articles with the above cabinets/storewell. (a) Folders and visa files (Ezee Files) suspension files; (b) Visa cards and (c) Instadex folders. These are of specific designs/size and are suitable for use only with the said cabinets/storewell. However, these items are not manufactured by the Company but are procured from the market, invoiced separately and cleared without payment of Central Excise Duty, These parts are however, supplied along with the cabinets/storewell and despatched together. 3. It is reported that visadex cabinets cannot be used without card pockets. In other words, card pockets are essential parts of visadex cabinet without which the latter has no utility for the said purpose. The very fact that visadex cabinets and card pockets are supplied together also indicates that visadex card pockets are essential parts of visadex cabinets and not merely accessories. 4. Visadex card pockets are appropriately known as card pockets for visadex cabinets and, therefore, are to be treated as parts of such cabinets instead of merely articles of paper. In terms of Rules of Interpretation of the Schedule to CETA, 1985, these are therefore to be treated as parts of visadex cabinets. 5. The above is also evident from notes of Chapters 94 relating to 'parts' given on page 1575 of Explanatory Notes of H.S.N. wherein such parts are classifiable as an item of furniture in question. 6. The question as to whether the value of card pockets, which is an integral part of visadex cabinets, purchased from the market, invoiced separately should be includible in the assessable value of visadex cabinet or not, has been examined and Board is of the view that Card Pockets should be considered as part of visadex cabinet and their value should be included in the value of visadex cabinets for the purpose of charging duty. Even otherwise when the pockets are being supplied along with cabinet, duty should be charged in the form in which the cabinet is cleared. Therefore, the value of card pockets should be included to determine the value of cabinet, even though card pockets are not fitted in the cabinet, and invoiced separately. On similar analogy the value of folders visa files and others referred above would be includible in the value of the cabinets. 7. The field formations may be informed accordingly. 8. The receipt of this letter may be acknowledged.