Exemption to Corrugated Paper Board Boxes – Incorrect entry – Board Clarifies
SL. No. 96E of the Table to Notification No. 4/2006-CE dated 01.03.2006 read as:
S. No. | Chapter or heading or sub-heading or tariff item of the First Schedule | Description of excisable goods | Rate | Condition No. |
96E | 4819 10 | Cartons, boxes and cases, of corrugated paper or paperboard whether or not pasted with duplex sheets on the outer surface | 5% | 12 |
Representations have been received in the Board that some field formations have raised the issue of non eligibility of concessional Excise Duty on Corrugated Board Boxes manufactured using Corrugated Board made of Kraft Paper & Duplex Paper Board on the ground that the product cannot be classified under Tariff Heading 4819 as Duplex Board has been used & that Kraft Paper is not predominant in the total quantum of Paper & Board used. Therefore, demand for Duty of 10% has been raised on such clearances.
Board now takes the help of its 1996 Circular explained above and clarifies that the benefit of exemption will be available to goods where the goods are squarely covered by the description even though the goods mentioned in the notification, are not covered by the Chapter/Heading Nos. /Sub-heading Nos. mentioned in the notification or if the heading no. indicated against the description is "'incorrect".
Board makes it clear that the benefit of concessional rate of excise duty in the instant case is available to cartons, boxes and cases, of corrugated paper/paperboard whether or not pasted with duplex sheets on the outer surface, subject to Condition No. 12 of Notification No. 4/2006-CE dated 01.03.2006.
This important clarification, which is bound to be beneficial to several manufacturers, is contained in a letter from TRU to Chief Commissioners. It is beyond comprehension as to why the Board is extremely shy of making its beneficial legislation public?
Board wants the Chief Commissioners to inform the field formations so that pending disputes are settled.
And if there was such confusion, why couldn't the Board correct this in this Budget?
Notification No. 4/2006-CE is superseded by Notification No. 12/2012 dated 17.03.2012 and this entry is almost identical.
S. No. | Chapter or heading or sub-heading or tariff item of the First Schedule | Description of excisable goods | Rate | Condition No. |
171 | 4819 10 | Cartons, boxes and cases, of corrugated paper or paperboard whether or not pasted with duplex sheets on the outer surface | 6% | 13 |
Anyway, it is laudable that the Board does not want to punish the assesses for the mistakes of the Board!
CBEC F No. 354/342 /2011-TRU, Dated: February 17, 2012