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Central Excise matters
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Central Excise
Circular No. 840 / 17
/2006-CX dated 6.12.2006
Classification of handmade biris, using printed labels/ wrappers made with the
aid of machines by job workers.
Certain manufacturers of biris purchase tobacco, obtain tendu
leaves and make biris by rolling the tobacco in tendu leaves. This process is
done without using any machine. The printed labels/ wrappers used for packing
the biris are either purchased from the market or got manufactured on job work
basis by sending the paper to the job workers by the manufacturers of biris.
Biris manufactured with the aid of machines and without the aid of machines are
classified under two separate tariff items of the Central Excise Tariff i.e.2403
10 39 and 2403 10 31 respectively.
2. In this regard, a doubt has arisen as to whether the handmade biris packed
with the wrappers/labels which are manufactured with the aid of machines by the
job workers are to be classified under Tariff item 2403 10 31 as biris
manufactured without the aid of machines or under Tariff item 2403 10 39 as
biris manufactured with the aid of machines.
3. The issue has been considered by the Board. The Tribunal in the judgement in
the case of M/s. Ajanta Sada Biri Co.[1997(95)ELT 513(T)], had held on similar
facts 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.
4. 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 by the job workers.
5. The above clarification in respect of biris may be brought to the knowledge
of trade and field formations suitably.
6. Pending issues may be finalized accordingly.
7. Hindi version will follow.
( Dilip Goyal )
Under Secretary to the Government of India
F.No.81/4/2004-CX.3