Central Excise - Budgetary changes - Effective rate of duty on articles of wood falling under Chapter 44 - Regarding - Central Excise - Letter F. No. 341/10/2006-TRU

Letter F. No. 341/10/2006-TRU Dated 22-3-2006 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Central Excise - Budgetary changes - Effective rate of duty on articles of wood falling under Chapter 44 - Regarding References have been received from certain Associations of plywood and panel manufacturers, seeking clarification on the applicable rate of excise duty on plywood, hardboard and allied products, in the light of changes made in Budget 2006-07. 2. It is clarified that there has been no reduction in excise duty on plywood and allied products. Excise duty at 8% has been imposed on articles of wood (vide S. No. 1 of Notification No. 10/2006-C.E., dated 1st March, 2006). Under the 8-digit excise tariff, which is aligned with the 8-digit customs tariff, the scope of various items is defined in the Harmonized Commodity Description and Coding System (Explanatory Notes). The Explanatory Notes under Chapter 44 at page 802, specify the scope of 'articles of wood' and reads as under - "This Chapter covers unmanufactured wood, semi-finished products of wood and, in general, articles of wood. These products may be grouped broadly as follows : (1) ........ (2) ........ (3) ........ (4) Articles of wood (except certain kinds specified in Note 1 to this Chapter and which, together with others, are referred to in the Explanatory Notes to particular headings below) (Headings 44.14 to 44.21)." Thus, articles of wood are only those goods which are covered under Heading Nos. 4414 to 4421.