No reduction of duty on plywood – Board clarifies
Board has clarified that there has been no reduction in excise duty on plywood and allied products in the recent budget. Excise duty at 8% has been imposed on articles of wood (vide S. No. 1 of notification No. 10/2006-C.E. dated 1st March, 2006). Under the 8-digit excise tariff, which is aligned with the 8-digit customs tariff, the scope of various items is defined in the Harmonized Commodity Description and Coding System (Explanatory Notes). So the Board clarifies that articles of wood are only those goods which are covered under heading Nos. 4414 to 4421. But strangely and as it is the practice these days, Board has chosen to issue such an important clarification through a letter from TRU and not a proper public circular.
F. No. 341/10/2006-TRU Dated : March 22, 2006