Central Excise MMSF - Classification and assessment of polyester Staple Fibre and Tow - Stage regarding - Central Excise - 19/ MMSF/88-CX.1

Central Excise MMSF - Classification and assessment of polyester Staple Fibre and Tow - Stage regarding Circular No. 19/ MMSF/88-CX.1 Dated 26-5-1988 [From F. No. 55/8/88-CX.1] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise MMSF - Classification and assessment of polyester Staple Fibre and Tow - Stage regarding. A doubt has arisen whether duty should be charged at tow stage or fibre stage in the case of manufacture of polyester staple fibre as both the products are specified in the Central Excise Tariff Heading 55.01. 2. The matter has been examined in the Board. The manufacturing process of polyester staple fibre involves the polymerisation of TPA and MEG. After the polymerisation, the polymer is forced under high pressure through pack filter media and extruded through spinnerets. The thread lines emerging from spinnerets pass over the finish rolls for the application of spin finish and then collected in the form of spun rope. The rope is pulled by rollers and placed in the piddler cans. Subsequently, the rope is taken to draw machines, where it is first drawn and then crimped in an integrated process. The crimpted tow is collected in boxes and finally sent to the cutter for producing staple fibre and then baled. It is reported that in a continuous process the tow arises as an intermediate product in the course of manufacture of polyester staple fibre. In the other type of manufacture, where the tow as such is intended to be cleared out of the factory, it is separately collected and duty is paid thereon before clearing the tow out of the factory. In the Central Excise Tariff heading 55.01, tow as well as fibres are specifically included. Thus, both these products are chargeable to duty under heading 55.01 as tow and fibre are known commercially as different and distinct commodities. Accordingly duty has to be discharged on the tow before its consumption in the manufacture of fibres unless tow is exempted otherwise. 3. Pending cases may be disposed of in the light of the above clarification. 4. Trade interest may also be informed suitably.