CIRCULAR NO.66/2000-CUS 11th August,2000F.No.-528/109/99-Cus(T.U.)
Sub: Eligibility of concessional duty under Notification No. 25/99-Cus., dated 28-2-99 to BOPP and Hazy film as 'plain film' regarding,
I am directed to refer to the subject mentioned above and to say that a representation has been received in Board's office Electronic Components Industries Association (ELCINA) regarding denial of the benefit of notification to BOPP film and Hazy film used in the manufacture of the capacitors.
2. The matter has been examined. Notification No. 25/99-Cus., dared 28-2-99, vide entry at Sl.No.52 prescribes a concessional duty of 5% on plain plastic films (other than polysterene film) of thickness 12 microns or below when used in the manufacture of electronic capacitor grade metallised dielectric plastic film. The word 'plain' is defined as 'not further worked'. From a perusal of the available literature, it would appear that both BOPP and Hazy films are 'further worked' films. BOPP films are reported to be oriented films obtained by stretching of hot plastic film to realign the molecular configration in two dimensions for improving the mechanical properties of the film, like tensile strength, impact strength etc. Similarly, Hazy films are surface treated films made by hazy. It is also reported that the cost of plain films is in the range of Rs. 110/- per kg.whereas BOPP films are much costlier. Further even though the composition of the plain film, BOPP film and Hazy film are one and the same, they are different in physical properties and market identification by way of nomenclature and value.
3. There are several Judicial pronouncement which state a notification has to be interpreted as such and one should not go beyond the express requirements of the language used therein. Viewed in this light, BOPP and Hazy PP films do not qualify for the exemption, as these products are quite different from plain films in terms of appearance, quality and price even though they may be used in the manufacture of plastic film capacitors. Instances have also been brought to the notice of the Board where importers have filed B/E for clearing BOPP/Hazy films without seeking the benefit of the exemption notification.
4. Keeping in view the position explained above, it has been decided that BOPP and Hazy PP films will not be eligible for concessionel duty under Notification No. 25/99-Cus., dated 28.2.99 (SI.No.52) as 'plain film' . Custom Houses may finalise the provisional assessments in the light of above decision. Wherever final assessments have been done, demands may be issued for the past period. Board may please be apprised of the action taken in the matter.
Please acknowledge the receipt of this circular.
(K.M. Ravichandran)
Sr. Technical Officer (TU)
(Please refer CUS CIR NO. 70/2003 DATE 06/08/2003)Presented by eximkey.com