Circular No. 51/51/94-CX dated 30/8/94
Subject: Central Excise-Classification-excisability of printing frames/flat bed screens for the period 1.3.1986 to 2.5.1994
In terms of Notification No. 201/87 dated 3.9.1987, printing frames falling under heading no 84.42 of the Schedule to the Central Excise Tariff Act,1985 were exempted from payment of duty when used within the factory of production in the printing of textile fabrics. Notification No. 201/87 dated 25.7.1991 and this amendment gave exemption to printing frames irrespective of the Tariff Heading.
2.The Board had also issued Notification No. 39/90-CE(NT) dated 10.10.199.0 under Section ll-C and waived the duty on the printing frames falling under Heading 84.42 for the period from 28.2.1986 to 2.9.1987.
3.The classification of printing frames as mentioned in the above said Notification was under heading 84.42. However, the Board had issued a circular
No.22/ ICCLF / 89-CX.I dated 20.12.1989 clarifying that flatbed screens (printing frames) were classifiable under heading 59.09. Because of conflict between the classification heading mentioned in Notification and Board"s Circular, certain disputes had arisen. The CEGAT vide Order No. E-195 to 221/94-BT dated 29.3.1994 has decided that the printing frames are classifiable under heading 84.42 in terms of Notification No. 39/90-CE(NT). The
judgment of CEGAT has been accepted by the Board.
4.In the Budget 1994-95, Notification No. 46/94-CE dated 1.3.1994 exempted printing frames treating its classification under Chapter 84. Thus, for the period from 3.9.1987,
(beginning with Notification No. 201/87 dated 3.9.1987) to 1.5.1994, printing frames have remained classifiable under heading 84.42. However, by Notification No. 99/94-CE dated 2.05.1994, changes have been made in Notification Nos. 46 / 94-CE and 27/94-CE. Printing frames have been deleted from Notification No. 46/94-CE and have been shown as falling under heading No. 59.09 in
Sl. No.1OA of Notification No. 27/94-CE.
5."The Board has therefore decided to withdraw the Circular No.22/ICCLF/89-CX.I dated 20.12.1989 which has created disputes during the period from 1987 to 1994. Printing frames/flat bed screens would thus be classifiable under heading 84.42 for the period from 1986 to 1.05.1994.
6.However, from 2.05.1994 onwards, Notification No. 27/94-CE dated 1.03.1994 as amended by Notification No. 99/94-CE dated 2.05.1994 showing its classification under heading 59.09,has to be backed by Section 37-B Order. Accordingly, Section 37-B Order is being issued settling the classification under heading 59.09 so that the benefit of Notification No.27/94-CE dated 1.03.1994 amended by 99/94-CE dated 2.05.1994 is made available.
7.All pending assessments may be finalised on the above basis. Lower field formations may be advised suitably. Section 37-B Order may please be converted into Trade Notice as usually done, and this Circular should be treated for internal use.
Sd/-
(Arvind Singh)
Deputy Secretary to the Government of India
F.No.l54/3/92-CX.4 Presented by eximkey.com