Paper/Aluminium containers manufactured in continuous process in the manufacture of package tea [Chapter 48 and 76] - Not Excisable - Central Excise - 141/2/89-CX.4

Paper/Aluminium containers manufactured in continuous process in the manufacture of package tea [Chapter 48 and 76] - Not Excisable F. No. 141/2/89-CX.4 Dated 1-3-1990 Government of India Central Board of Excise Customs New Delhi I am directed to say that a doubt has been raised as to whether during the continuous process of manufacture of package tea, paper container or aluminium container comes into existence as an intermediate excisable product or not. 2. As such containers were reportedly not coming into existence in a separate marketable condition for the levy of excise duty, it was felt that the matter was covered by Board's Circular No. 11/89 (F. No. 141/14/87-CX.4). 3. However, since Collector of Central Excise, Nagpur in his letter dated 25th May, 1989, had reiterated that containers do come into existence during the process of packing of tea, the Principal Collector of Calcutta was requested to survey the practice adopted in various units of manufacturers M/s. Brooke Bond India Limited, and M/s. Lipton India Limited and report whether in fact paper/aluminium container actually comes into existence prior to filling up of tea. 4. The Principal Collector of Calcutta's report has been received. He is of the view that the subject article, unlabelled one-side-open, paper-backed aluminium foil packet, may not be deemed to be excisable goods namely container within the ambit of Section 3/2(d)/2(f) of the Central Excises and Salt Act, 1944 read with Section 2 of the Central Excise Tariff Act, 1985. 5. Board agrees with the view, that no excisable paper container or aluminium container in a separate, distinct, marketable condition comes into existence during the continuous process of manufacture of package tea.