Circular No. 128/39/95-CX dated 25/5/95

Sub: Circulation of the views of Development Commissioner (Handicrafts) regarding classification of metallic yarn made out of duty paid metallised lacquered polyester film as "zari" - reg.

I am directed to refer to Board"s Circular No. 15/88-CX.I (F.NO. 13/7/88-CX.I) dated 25.4.88 wherein it was clarified that Board considers Zari and Zari items as "handicrafts" eligible for exemption under Notification No. 76/86 dated 10.2.86.

2. A doubt has now arisen whether imitation or real zari made from duty paid metallised polyester film is also classifiable as "handicrafts" and entitled to exemption as "handicrafts" in spite of the withdrawal of exemption to metallised polyester yarn.

3. It has been clarified by the Office of Development Commissioner (Handicrafts) that imitation or real zari made of gold, silver thread or man-made metallic yarn made out of duty paid polyester .film (metallised/lacquered) namely Kasab, Kalabatu, tilla, wire thread or zari thread and metallic yarn have been specifically classified as "handicrafts". As the Development Commissioner (Handicrafts) treats such products as "handicrafts", the same may be treated as "handicrafts" for the purpose of Notn. No.76/86-CE dt. 10.2.86.

Sd/-
(S.C.Bhatia)
Under Secretary to the Govt. of India

F.No.56/2/95-CX.I

(Please refer CIR NO.773/06/2004-CX, DT. 28/01/2004 - Circulation of the views of the Development Commissioner (Handicrafts) regarding classification of ready made garments/apparel as handicrafts)

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