CIR NO.628/19/2002-CX DATED 19/03/2002
- Document type
- Circular
- Reference no.
- I
- Dated
Central Excise-Removal of cops/cones etc. under erstwhile Rule 96E for conversion into Hank Yaru-matter
Subject:- Central Excise-Removal of cops/cones etc. under erstwhile Rule 96E for conversion into Hank Yaru-matter-reg.
I am directed to invite your attention to Boards Circular No.72/88-CX6 dated 4.10.1988 vide which it was directed to issue protective show cause notices to demand duty on cotton yarn on cops/cones consumed captively or sent outside factory premises for conversion into Hank yarn till a final decision in the matter is communicated. Board was of the view that since plain reeled Hanks are used only by the Handloom Sector, charging duty on the intermediate goods i.e. cotton yarn on cops/cones etc. shall nullify the purpose of exemption. The Auditor General(Audit) has finally accepted the view of the department in this regard.
2. Pursuant to settlement of CERA objection in the matter, Board has decided that all such cases pending disposal and kept in call Book should be taken out and decided expeditiously.
3. Field formations may be informed accordingly.
4. Receipt of the same may please be acknowledged.
5. Hindi version will follow.
F.No.201/28/2001-CX-6