Central Excise - Sr. No. 39 of Notification No. 53/88-C.E., dated 1-3-1988 before amendment by Notification No. 133/88-C.E., dated 15-3-1988 - Doubts as to whether the exemption was its available to the goods in question when manufactured out of duty-paid plastic materials of headings Nos. 39.01 to - Central Excise - 14/88-CX.3

Central Excise - Sr. No. 39 of Notification No. 53/88-C.E., dated 1-3-1988 before amendment by Notification No. 133/88-C.E., dated 15-3-1988 - Doubts as to whether the exemption was its available to the goods in question when manufactured out of duty-paid plastic materials of headings Nos. 39.01 to 39.15 or out of scraps of plastics during the period from 1-3-1988 to 14-3-1988 Circular No. 14/88-CX.3 Dated 22-7-1988 [From F. No. 93/29/88-CX.3] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject: Central Excise - Sr. No. 39 of Notification No. 53/88-C.E., dated 1-3-1988 before amendment by Notification No. 133/88-C.E., dated 15-3-1988 - Doubts as to whether the exemption was its available to the goods in question when manufactured out of duty-paid plastic materials of headings Nos. 39.01 to 39.15 or out of scraps of plastics during the period from 1-3-1988 to 14-3-1988. Doubts as to whether the exemption was available to the goods in question when manufactured out of duty-paid plastic materials of heading Nos. 39.01 to 39.15 or out of scraps of plastics during the period from 1-3-1988 to 14-3-1988. It has been brought to the notice of the Board that demands of excise duty are being raised on goods, other than of Polyurethane, falling under headings numbers 39.23, 39.24 and 39.26 when those are manufactured out of duty-paid plastic materials of headings numbers 39.01 to 39.15 or out of scraps of plastics, during the period from 1-3-1988 to 14-3-1988. It has been reported that the Central Excise authorities are contending that, for the purpose of exemption as per Sr. No. 39 of Notification No. 53/88-C.E., dated 1-3-1988 during the period from 1-3-1988 to 14-3-1988, the goods in question had to be manufactured both out of duty-paid plastic materials of headings numbers 39.01 to 39.15 and out of the scraps of plastics because of the word 'and' occuring at the end of clause (i) in Column 5 of Sr. No. 39 of notification No. 53/88-C.E., dated 1-3-1988. With effect from 15-3-1988, the problem has been taken care of by notification No. 133/88-C.E., dated 15-3-88 which has substituted the word 'and' by the word 'or' at the end of clause (i) of Column No. 5 of Sr. No. 39 of notification No. 53/88-C.E., dated 1-3-88. 2. The matter has been examined. It is observed that it has been consistently been the Government's policy to exempt certain specified articles of plastics when these are manufactured either out of the duty-paid plastic materials or out of the scraps of plastics. In this respect, attention is invited to notification No. 182/82-C.E., dated 11-5-1982, issued under the old Tariff, which contained the same type of exemption. Under the new Central Excise Tariff also, the same exemption was sought to be continued vide Sr. 38 of Notification No. 132/86-C.E., dated 1-3-1986 with the same conditions. When the Notification No. 132/86-C.E., dated 1-3-1986 was replaced by Notification No. 53/88-C.E., dated 1-3-1988, the Government sought to continue the same sort of exemption in respect of goods, other than of polyurethanes, falling under headings Nos. 39.23, 39.24 and 39.26 with the same conditions. However, the word 'and' at the end of clause (i) of column 5 of Sr. No. 39 of notification No. 53/88-C.E., dated 1-3-1988 was inadvertently put. This has given an impression as if the exemption under Sr. No. 39 of notification No. 53/88-C.E., dated 1-3-1988 was available to the concerned goods during the period 1-3-1988 to 14-3-1988 only when those were manufactured out of duty-paid plastic materials of headings numbers 39.01 to 39.15 and the scraps of plastics both. 3. The Board is of the view that it may not be proper and just to deny the exemption to the manufactures as per Sr. No. 39 of notification No. 53/88-C.E., dated 1-3-1988 during the period from 1-3-1988 to 14-3-1988 merely because of the above-mentioned drafting mistake although the intention had always been to exempt such goods when these are manufactured either out of the duty-paid plastic materials of headings numbers 39.01 to 39.15 or out of the scraps of plastics. 4. The trade interests may also be suitably advised. 5. All pending assessments may please be finalised on the above basis.