Dutiability of Car mattings made from non-woven materials in roll form - Regarding - Central Excise - 5/87

Dutiability of Car mattings made from non-woven materials in roll form - Regarding Circular No. 5/87 Dated 23-6-1987 [From F. No. 57/1/87-CX.1] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject: Dutiability of Car mattings made from non-woven materials in roll form - Regarding. A reference is invited to Board's Circular No. 1/floor coverings/86 dated the 1st December, 1986 issued from F. No. 59/7/86-CX.2 in terms of which it was clarified that non-woven material in roll form, as well as the car mattings obtained therefrom would be classifiable under Heading No. 57.02 of the Tariff. It was also clarified in the Circular that the provision for in-bond movement without payment of duty under Rule 56B of the Central Excise Rules would not apply in this case since the non-woven material in roll form is a fully finished excisable product classifiable under a specific heading. 2. A doubt has been raised as to whether duty would again be attracted on the Car mattings produced from duty paid non-woven material in roll form. The matter was discussed in the Conference of North Zone Collectors of Central Excise held at Delhi on 27th and 28th May, 1987. The Conference examined the scope of Heading No. 57.02 which covers "Carpets and other textile floor coverings including floor coverings of felt, whether or not made up". It was considered that in terms of the tariff description, the non-woven material as well as the Car mattings remained "floor coverings", notwithstanding the work required to be carried out for making the materials suitable for use as Car mattings. It was also viewed that the expression "whether or not made up" appeared to indicate that duty liability is intended either at the non-made-up or at the made-up stage, and not at both the stages. Accordingly, the Conference was of the view that levy of duty on Car mattings made from duty paid non-woven material in roll form may not be justified. 3. The Board has accepted the aforesaid views of the Conference that duty liability would not be attracted on Car mattings made from duty paid non-woven material in roll form.