Duty on tin cuttings generated during manufacture of metal containers - Clarification regarding - Central Excise - 6/88

Duty on tin cuttings generated during manufacture of metal containers - Clarification regarding Circular No. 6/88 Dated 1-3-1988 [From F.No. 139/80/87-CX.4] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Duty on tin cuttings generated during manufacture of metal containers - Clarification regarding. A doubt has arisen as to whether cuttings/trimmings of tin plates arising during the course of manufacture of tin containers when made from tin plates would be classifiable under sub-heading 7203.20 as waste and scrap of iron steel chargeable to excise duty @ Rs. 365/- per tonne or as cuttings of tin plates, sheets, taggers etc. under sub-heading 7212.20 chargeable to excise duty @ Rs. 970/- per tonne. The issue has reportedly become the subject matter of a draft audit para. The matter has been examined. Under the old Central Excise Tariff, during the period prior to 1-8-1983, T.I. 28 covered cuttings/trimmings of tin plates, sheets etc. At that time, a clarification was issued by the Board vide T.A. No. 55/82, dated 6-9-1982 that cuttings of tin plates (cuttings/trimmings of tin plates) should be treated as classifiable under T.I. 28, thereby rescinding Board's instructions contained in F. No. 31/3/60-CX.1, dated 29-8-1960. From 1-8-1983, the cuttings of tin plates got classified under T.I. 25(13)(iii). A definition of waste and scrap of iron or steel was also given as per clause (ix) of the Explanation to T.I. 25, by which it was clarified that waste and scrap of iron or steel would mean waste and scrap fit only for the recovery of metal or for use in the manufacture of chemicals but does not include slag, ash and other residues. From this, it is evident that such cuttings/trimmings of tin plates, sheets etc. which are fit only for the recovery of metal or for use in the manufacture of chemicals (not being slag, ash and other residues) could be treated as classifiable under T.I. 25(3) as waste and scrap of iron and steel. In the Schedule to the Central Excise Tariff Act, 1985, waste and scrap of iron or steel are classified under heading No. 72.03. Cuttings of tin plates appear to be classified under sub-heading No. 7212.20. The same definition of waste scrap of iron or steel as in the old Central Excise Tariff as per clause (ix) of chapter note 1 of chapter 72. As per HSN notes also, trimmings and cuttings of tin plates which are definitely not re-usable as such because of breakage, cutting or other reasons should be treated as waste scrap of iron steel (p-972 987-988). In view of the reasons given above, it is viewed that cuttings or trimmings of tin plates/sheets etc. as are fit only for the recovery of metal or for use in the manufacture of chemicals would be appropriately classifiable as waste and scrap of iron or steel both under the old Central Excise Tariff and under the new Central Excise Tariff Act. The Board's earlier instructions as contained in T.A. No. 55/82, dated 6-9-1982 may be treated to have been modified to the extent mentioned above. Trade interests may be informed accordingly.