Excise duty on thermocol sheets, boards, blocks etc. under heading No. 39.20 or 39.21 - Regarding - Central Excise - 24/89

Excise duty on thermocol sheets, boards, blocks etc. under heading No. 39.20 or 39.21 - Regarding Circular No. 24/89 Dated 12-4-1989 [From F. No. 93/16/89-CX.3] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Excise duty on thermocol sheets, boards, blocks etc. under heading No. 39.20 or 39.21 - Regarding. It has been brought to the notice of the Board that excise duty at appropriate rates is not being paid by some manufacturers on thermocol boards, sheets, blocks etc. classifiable under heading No. 39.20 or 39.21 and captively consumed in the manufacture of exempted thermocol articles classifiable as 'articles of plastics'. 2. It has been reported that polystyrene classifiable under heading No. 39.03 is the basic raw material for the manufacture of thermocol. Therefore, sheets, blocks, boards, plates etc. of thermocol would be appropriately classifiable under heading No. 39.20 or 39.21 depending on whether such goods are non-cellular or cellular. If such goods are captively consumed in the manufacture of dutiable articles of plastics, those would remain exempt by virtue of notification No. 217/86-C.E. However, if such goods are captively consumed in the manufacture of exempted articles of plastics, duty at appropriate rates would be chargeable on such goods. Inspite of this clear position, some manufacturers have reportedly evaded payment of duty on such thermocol sheets, plates, blocks etc. captively consumed in the manufacture of exempted thermocol articles. 3. The above position is brought to your notice in order that you may take immediate remedial measures for charging excise duty on the goods in question. A factual report may be sent to the Board at an early date informing inter alia, the extent of duty evasion, if any, that has already taken place in this regard in your Collectorate.