Circular No. 74/74/94-CX dated 2/11/94
I am directed" to enclose herewith copies of Notification Nos. 134/94 Central Excise and 135/94-Central Excise both dated the 27th October, 1994. These notifications, inter alia seek to make the following changes in the excise duty structure on utensils of aluminium and copper and the materials used in their manufacture:
(a) Unrefined and unwrought copper falling under Heading No. 74.02 and 74.03 of the Schedule to the Central Excise Tariff Act, 1985 intended for use in the manufacture of utensils or handicrafts has been exempted from excise duty.
(b) Untrimmed sheets or circles of copper tailing under Heading No.74.09 and intended for use in the manufacture of utensils or handicrafts has been subjected to a specific excise duty @ Rs.2000 per MT provided that no input duty credit is taken under rule 57A or Rule 57Q of Central Excise Rules, 1944.
(c) Other sheets and circles of copper intended for manufacture of copper utensils or handicrafts will, however, be fully exempted from excise duty.
The above three exemptions will be applicable only in respect of units, other than primary producers, which manufacture copper from copper ore or copper concentrate. The manufacturing units will, however, have the option to pay duty @ 15% ad valorem if they intend to take Modvat credit on their inputs.
(d) Unwrought aluminium falling under Heading No. 76.01 intended for use in the manufacture of aluminium utensils has been fully exempted.
(e) Aluminium plates and sheets (other than circles) falling under Heading No. 76.06 intended for use
in the manufacture of utensils has also been fully exempted.
(f) Aluminium circles has been subjected to an excise duty of Rs.2000 per MT irrespective of whether it is used captively or otherwise.-This duty rate will apply if no input duty credit is taken.
It will be noted that the exemption to circles of copper and aluminium, used captively for manufacture of utensils has currently been withdrawn.
The above exemption will apply only to units other than primary producers who manufacture aluminium from aluminium ores and aluminium concentrates.
Sd/-
(Gautam Ray)
Director (TRU)
F.No. B.32/1/94-TRU Presented by eximkey.com