Payment of excise duty on broken grinding wheels – CBEC clarifies in yet another private clarification!
The Chief Commissioner, Chennai had requested the that the Board may examine the option of introducing a new chapter heading at the end of Chapter 68 for broken grinding wheels since there is no specific tariff sub heading for the broken grinding wheels. Further, it was stated that the broken/rejected/defective grinding wheels are sold by the assessee for use in the floor scrubbing, knife polishing, marble and cuddapah stone polishing, which also indicates that the broken/rejected/defective grinding wheels are marketable product.
The matter has been examined by the Board. CBEC feels (who exactly is the feeler is not known) that it is not necessary to amend the tariff, which is aligned with the internationally accepted H.S.N. However, since these products are capable of being used for various purposes like polishing, etc. as mentioned in the reference, it would be appropriate that they are classified in the respective headings depending upon their end use.
This important Tariff Classification clarification is couched in a letter from an Under Secretary in the Board to the Chief Commissioner concerned with copies to all Chief Commissioners. Again we fail to understand why the Board cannot make such important clarifications through Public Circulars? Why does the government work overtime in preventing information reaching the stake holders?
CBEC F. No. 68/1/2006- CX.1 , Dated 09 April 2008