Central Excise - Chapter 39 - Duty liability on lacquered/metalised/ laminated plastic material made from duty-paid bare films - Central Excise - 93/13/87-CX.3

Central Excise - Chapter 39 - Duty liability on lacquered/metalised/ laminated plastic material made from duty-paid bare films F. No. 93/13/87-CX.3 Dated 25-6-1987 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Chapter 39 - Duty liability on lacquered/metalised/ laminated plastic material made from duty-paid bare films. A reference is invited to Board's letter F. No. 93/75/86-CX.3, dated 9-10-1986 whereunder lacquered/laminated/metallised plastic films made from duty-paid bare films were held to be liable to excise duty and to say that a doubt has been raised as to whether such lacquered/laminated/metallised films are to pay excise duty @ 35% ad valorem as per Notification No. 132/86, dated 1-3-1986 or 25% ad valorem as per Notification No. 269/86, dated 24-4-1986. 2. The matter has been examined by the Board. Both bare films and lacquered/laminated/metallised films of plastics made out of duty-paid bare plastic films are classifiable under Heading No. 39.28 of the Schedule to the Central Excise Tariff Act, 1985. Therefore, the rates of duty applicable for bare plastic films would also normally be applicable for metallised/laminated/ lacquared plastics films made out of duty-paid bare films. Notification No. 269/86, dated 24-4-1986 prescribes a confessional rate of duty of 25% ad valorem on some specified varieties of plastic films provided such films are manufactured out of duty-paid plastic materials falling under Heading No. 39.01 to 39.15. Therefore metallised/lacquered/laminated plastic films made out of duty-paid bare plastic films can also be said to be manufactured out of duty paid plastic materials and can avail the same rate of duty as on bare plastic films. 3. A doubt has been raised as to whether such metallised/laminated/lacquered plastic films can be treated as having been made out of plastic materials falling under Heading No. 39.01 to 39.15, since such metallised/laminated/lacquered plastic films are not directly manufactured out of duty-paid plastic materials falling under Heading No. 39.01 to 39.15. The Board is of the view that so long as duty-paid bare films, which have gone into the manufacture of such lacquered/laminated/metallised plastic films can be proved to have been manufactured out of duty-paid plastic materials falling under heading No. 39.01 to 39.15, such lacquered/laminated/metallised films made from such duty-paid bare plastic films can also be treated to have been manufactured out of duty paid plastic materials falling under Heading No. 39.01 to 39.15 and would be eligible for the concessional rate of duty of 25% ad valorem as per notification No. 259/86, dated 24-4-1986 provided all other conditions are also satisfied.