Circular No. 307/23/97-CX dated 25/3/97
Sub: Glassware of a kind used for table, kitchen etc.
I am directed to refer to Sr.No. 162 of notification No. 4/97-Central Excise, dated the 1st March, 1997 and Sr. No. 124 of notification No. 5/97-Central Excise, dated the 1st March, 1997 and to say that whereas the former prescribes a rate of duty of 13% ad valorem for glassware produced by semi-automatic process in respect of goods falling under heading Nos. 70.07 to 70.15, the latter prescribes a duty of 8% ad valorem for all goods falling under sub-heading No. 7015.00. In the context of this, doubts have been expressed about the effective rate of duty which shall apply to goods falling under sub-heading No. 7015.00. Some Commissioners have also requested for clarification whether goods falling under sub-heading No. 7015.00 when produced "by semi-automatic process would attract effective duty of 8% ad valorem or 13% ad valorem for the reason that such goods are included in Sr. No. 162 of notification No. 4/.97-CE as well as Sr. No. 124 of notification No. 5/97.
2. In the context of the above it may be mentioned that Sr.No. 124 of notification No. 5/97-CE covers all goods falling under sub-heading No. 7015.00 and the rate of duty of 8% ad valorem will apply to such goods irrespective of whether they are produced by semi-automatic process or otherwise. This rate is lower than the rate appearing against Sr.No. 162 of notification No. 4/97-CE and, therefore, it is apparent that in such a situation the lower rate will be the effective rate of excise duty. However, in order to remove all doubts and to make the interpretation absolutely free-from doubt, reference to heading No. 70.15 has been deleted from Sr.No. 162 of notification No. 4/97-CE. Similarly, reference to heading No. 70.09 has also been deleted for the reason that such goods in any case attract 13% ad valorem duty under Sr.No. 123 of notification No. 5/97-CE.
3. The above deletions made vide amending notification No. 14/97-CE, dated the 21st March 1997, are purely technical and clarificatory in nature.
Sd/-
(Nishith Goyal)
Technical Officer (TRU)
F.No.B-30/1/97-TRU
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