Metal container parts going in the manufacture of exempted metal containers - Central Excise - 03

Metal container parts going in the manufacture of exempted metal containers Circular No. 3 Dated 19-2-1987 [From F. No. 164/4/87-CX.4] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Duty liability on parts of metal containers going in the manufacture of exempted metal containers. Doubts have been raised as to whether excise duty is leviable on ring, lid, bottom and cylindrical body, which go into the making of metal containers, which are exempt from excise duty in terms of S. No. 3 of the Table annexed to the notification No. 59/86-C.E., dated the 10th February, 1986. 2. Metal containers, other than those of aluminium are classifiable under sub-heading 8312.12 of the Central Excise Tariff. It has been represented that the aforesaid parts of metal containers would also be classifiable under the same sub-heading in view of Note-5 of Chapter 83 of the CET, and hence the exemption available to metal containers in terms of notification No. 59/86-CE should be applicable to these parts as well. Another point which has been made in this connection is that, until recently, no excise duty was demanded or levied on these parts and demands now raised have rendered the exemption to metal containers covered by notification No. 59/86-C.E. ineffective. 3. The matter is presently under examination of the Board. It has accordingly been desired by the Board that no coercive action may be taken for recovery of excise duty on the aforesaid parts going into the manufacture of such metal containers, covered by S. No. 3 of the Table annexed to notification No. 59/86-C.E., dated 10-2-1986, as amended, till the issue finally decided by the Board.