Duty liability on lacquered/metallised/laminated plastic materials made from duty-paid bare plastic films - Central Excise - 5/89

Duty liability on lacquered/metallised/laminated plastic materials made from duty-paid bare plastic films Circular No. 5/89 Dated 10-1-1989 [From F. No. 83/50/88-CX.3] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Duty liability on lacquered/metallised/laminated plastic materials made from duty-paid bare plastic films A question has been raised as to whether imported bare plastic films should be charged to C.V. duty at the concessional rate of 25 per cent a.v. as per Sr. No. 35 of notification No. 53/88-CE dated 1-3-1988 or at the higher concessional rate of 35 per cent a.v. as per Sr. No. 32 (iii) of notification No. 53/88-C.E., dated 1-3-1988. Similarly, a question has also been raised as to whether metallised plastic films manufactured in India from out of such duty paid imported bare plastic films should be charged to Central Excise duty at the rate of 25 per cent a.v. as per Sr. No. 35 of notification No. 53/88-C.E., dated 1-3-1988 or at the higher concessional rate of 35% a.v. as per Sr. No. 32 (iii) of notification No. 53/88-C.E., dated 1-3-1988. 2. The matter has been examined. The Board is of the view that imported bare plastic films cannot be charged to duty @ concessional rate of 25% a.v. as per Sr. No. 35 of notification No. 53/88-C.E., dated 1-3-1988 but should be charged to duty @ 35% a.v. as per Sr. No. 32 (iii) of Notification No. 53/88-C.E., dated 1-3-1988 because, in respect of imported bare plastic films, no Central Excise duty or Countervailing duty is paid on the goods falling under headings Nos. 38.01 to 39.15 from which such films have been produced. Similarly, metallised plastic films manufactured in India from out of such duty-paid imported bare plastic films should also be charged to Central Excise duty @ 35% ad valorem as per Sr. No. 32(iii) of notification No. 53/88-C.E., dated 1-3-1988 and not @ concessional rate of 25% ad valorem as per Sr. No. 35 of notification No. 53/88-C.E., dated 1-3-1988, because such metallised films also cannot be stated to have been manufactured from out of Central Excise duty or Countervailing duty-paid plastic raw materials of headings numbers 39.01 to 39.15. The Board's instructions contained in their F.No. 93/13/87-CX.3, dated 25-6-1987 cannot apply in such cases. 3. The above guidelines may be brought to the notice of the lower field formations and the trade interests may also be suitably advised. 4. All pending assessments may be finalised on the above basis.