Handmade biris; machine made labels – Board clarifies
Biris made without the aid of machines is classified under SH 2403 10 31. But what happens if the labels/wrappers are machine made (as obviously they are)?. The Board has now clarified the issue. Board notes the fact that the Tribunal had in 1997 in the Ajanta SadaBiri Co case had held that where labels were manufactured by job worker with the aid of machines, the biris will still be considered manufactured without the aid of machines. The Board circular states, “After taking into account the various judicial pronouncements and the fact that rolling and other processes involved in the manufacture of biris per se are not carried out with the aid of machines, the Board is of the view that in such circumstances, it is legal and proper to classify such biris manufactured without the aid of machines under Tariff item No 2403 10 31, even if the labels/ wrappers are manufactured with the aid of machines”
Incidentally, the Board forgets to mention that they had gone in appeal against the above mentioned Tribunal order which was dismissed by the Supreme Court of India as time barred in 1999 with the observation, “There is a delay of 359 days in filing the appeal for which no satisfactory explanation is forthcoming.”
It took the Board 359 days to appeal against the order to take poor biri manufacturers that too handmade biris and after they failed in that mission, it took them seven long years to clarify that Tribunal was after all right. And perhaps litigation was merrily going on all these years, but as they say better late that never.
CIRCULAR No. ,Dated: December 6, 2006