Circular No. 583/20/2001-CX, dated 20th August, 2001
Excisability and classification of Cable Jointing Kits - Clarification
Subject:- Central Excise - Excisability and classification of Cable Jointing Kits - Clarification regarding.
I am directed to invite reference to Board"s
Circular No.308/24/97-CX dated 27.3.97 whereby it was clarified that the process of putting together the duty paid articles into a container like carton, kit
etc., so that a new commercially distinct product viz, "Cable Jointing Kits" comes into existence would amount to manufacture and would be appropriately classifiable under heading 85.47 of Central Excise Tariff Act, 1985.
2. The High Court of Andhra Pradesh in W.P. Nos.8818, 22078 and 24242 filed by M/s XL Telecom Ltd & others has, vide
judgment dated 2.2.98 [1999 (105) ELT 263 (AP)] held that the cable jointing kit is not excisable as no manufacture is involved. The Court has held that by placing all articles in one kit, the kit has a distinct name known as "cable jointing
kit", but there is no change in character and use of the articles placed in the kit. The SLPs filed by the Department on the same issue in the case of M/s REPL and Others have been
dismissed by the hon"ble Apex Court on 3.3.2000 (C.A.Nos. 1462-1464/1999, 4314-4315/1999 & 4659/1999).
3. In view of above, the issue regarding acceptance of Andhra Pradesh High Court above Order was taken up with the Ministry of Law who have opined that in view of the order of the Supreme Court in the case of REPL, it appears advisable that the order of the
Hon"ble High Court of A.P. maybe accepted by the Administrative Department. The Board has accepted the above advise of the Law Ministry. The classification of cable jointing kit will accordingly be governed by the
A.P. High Court"s above said order. The Board"s Circular No. 308/24/97-CX dated 27.3.97 therefore, stands withdrawn.
4. The Trade and Field formations may please be informed accordingly.
5. Receipt of the Circular may please be acknowledged.
Sd/-
(S.C.BHATIA)
UNDER SECRETARY TO THE GOVT. OF INDIA
Internal Distribution: As usual.
F.No. 151/18/96-CX.4
Presented by eximkey.com