Central Excise - Chapter 27 - Raw Naphtha used in petro-chemicals - Notification No. 75/84-CE., dated 1-3-1984, as amended, (Sr. No. 3) Scope of - Clarification regarding - Central Excise - 29/88-CX.3

Central Excise - Chapter 27 - Raw Naphtha used in petro-chemicals - Notification No. 75/84-CE., dated 1-3-1984, as amended, (Sr. No. 3) Scope of - Clarification regarding Circular No. 29/88-CX.3 Dated 24-11-1988 [From F. No. 83/8/88-CX.3] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Chapter 27 - Raw Naphtha used in petro-chemicals - Notification No. 75/84-CE., dated 1-3-1984, as amended, (Sr. No. 3) Scope of - Clarification regarding Attention is invited to Ministry's F. No. 83/15/72-CX.3, dated 26-3-1976, which clarified, in the context of notification No. 190/75-C.E., dated 30-8-1975, as amended, (since rescinded) that the concessional rate of duty prescribed by that notification on raw naphtha should not be denied when raw naphtha is intended for use in the manufacture of any one or more of the products specified in the schedule appended to that notification notwithstanding the production of other goods which are incidental/inevitable/involuntary in such production and that, in such cases, the whole of the raw naphtha would be deemed to have been used in the manufacture of product(s) for the manufacture of which raw naphtha was obtained. This clarification was issued by the Ministry after consulting the Chief Chemist, CRCL, the Ministry of Petroleum and the Ministry of Law. 2. It has now been represented that although notification No. 190/75-CE., dated 30-8-1975 has been incorporated at Sr. No. 3 of notification No. 75/84-CE., dated 1-3-1984, as amended, certain Central Excise Collectorates are taking a stand that Ministry's F.No. 83/15/72-CX.3, dated 26-3-1976 may not be applicable to Sr. No. 3 of notification No. 75/84-CE., dated 1-3-1984, as amended, and demands are sought to be raised. 3. The matter has been examined. It is found that notification No. 190/75-C.E., dated 30-8-1975 has been incorporated with all the conditions at Sr. No. 3 of notification No. 75/84-CE., dated 1-3-1984, as amended. There is, therefore, no reason why instructions contained in Ministry's F.No. 83/15/72-CX.3, dated 26-3-1976 should be deemed to be inapplicable in the context of notification No. 75/84-C.E., dated 1-3-1984 as amended. Therefore, it is being clarified that Ministry's instructions contained in F.No. 83/15/72-CX.3 dated 26-3-1976 should hold good also in the context of Sr. No. 3 of notification No. 75/84-C.E., dated 1-3-1984. as amended. 4. The above guidelines may be brought to the notice of lower field formations and the trade interests also may be suitably advised. 5. All pending assessments may be finalised on the above basis.