Circular No. 105/16/95-CX dated 2/3/95
Subject: Interpretation of Explanation II to Rule 13 of the Central Excise
Rules, 1944-lnstructions reg.
I am directed to say that a doubt has been raised as to whether the said rules
provide for manufacture-in-bond of only excisable goods or also of non-excisable
goods. Another doubt has been raised whether duty is required to be paid on such
intermediate goods or packing material which are used for manufacture-in-bond of
export goods, or for packing the latter, in terms of Rule 13(l)(b); Both these matters
have been examined in the Board.
2. It is clarified that Rule 12(1 )(b) as well as Rule 13(l)(b), while referring to
the manufacture-in-bond do not restrict the facilities envisaged thereunder only to
cases where excisable goods are manufactured-in-bond. These provisions would also
apply to those cases where goods manufactured-in-bond for export are not excisable.
3. It is also clarified that under Rule 13(l)(b), intermediate goods as well as
packaging material on such duty of excise is payable, can be removed without payment
of duty for manufacture-m-bond of any goods which are to be exported. Such export goods
can be excisable as well as non-excisable. Similarly, removal of a material in terms
of Rule 13(l)(b) for manufacture of packing, used for packing export goods and
exported therewith is also permitted. Further, the packing material so manufactured
in bond under Rule 13(l)(b) and revised for packing export goods and exported therewith
is not liable to excise duty.
4 Foregoing, however are subject to the manufacture exporter following the terms and
conditions as laid down by Collector in terms of said Rules.
Sd/-
(I.P. Lal)
Deputy Secretary to -the Govt. of India
F.No.209/4/95-CX.6
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