Cassette tapes for sound recording Blank cassette - Classification - Central Excise - 153/2/86-CX.4

Cassette tapes for sound recording Blank cassette - Classification Letter No. 153/2/86-CX.4 Dated 30-7-1986 Government of India Ministry of Finance (Department of Revenue) New Delhi Doubts have been raised as to whether cassette tapes for sound recording (i.e. blank cassette) would attract duty again if made from duty paid prepared un-recorded media for sound recording, when both products fall under the same sub-heading 8525.00 of Central Excise Tariff Act, 1985. 2. It may be stated that under the tariff which was in operation prior to 28-2-1986, magnetic tape of width not exceeding 6.5 mm for sound recording was classifiable under sub-item (1) of item No. 59 of C.E.T. There was another sub-item (5) of the said item 59 which covered cassette tape for sound recording. Although the rate of duty under sub-item (1) as well as sub-item (3) was the same, i.e. 25% ad valorem but because of the separate categorisation of cassette tape for sound recording under a different sub-item, it was clear that such cassette tape for sound recording (i.e. blank cassette) made from duty paid un-prepared media would attract further duty at the blank cassette stage. 3. In the new tariff, there is no separate sub-heading for 'cassette tape for sound recording'. The scope pf sub-heading 8423.00 is wide enough to cover prepared un-recorded media including cassette tape for sound recording. In this connection, attention is invited to para 5 of the Board's F. No. 158/1/86-CX.4, dated 8-5-1986 wherein it was, inter alia, observed that problem of duty liability on mother shells enclosed in a easing would not appear to exist in the new tariff in view of the fact that un-recorded tape, whether in spools or in cassette form, are covered by single sub-heading 8523.00 only, and consequently, the excise duty would be attracted at one stage only. In this background, the Board is of the view that no further excise duty would be recoverable on cassette tape for sound recording (i.e. blank cassette) made from duty paid prepared un-recorded media for sound recording.