Classificatory amendment so as to provide that exemption from excise duty under Sl.No.193 and 194 of Notification no.5/98 is available to goods of precious metals such as catalysts, falling under chapter 71when re-made out of used or spent catalysts of such precious metals, etc.

Goods from Precious Metals Exempt from Excise Duty; Chapter 71 Clarification under Sl. No. 193 & 194.

The circular clarifies that goods made from precious metals, such as catalysts, ingots, and powders, falling under Chapter 71, are exempt from excise duty under Sl. No. 193 and 194 of Notification No. 05/98-C.E., even when re-made, re-conditioned, or re-fabricated from used or spent catalysts. This exemption applies regardless of whether these goods are manufactured for the first time or reprocessed. The circular addresses concerns that such goods were being improperly charged under Sl. No. 36 of the same notification and confirms the exemption by amending the entry at Sl. No. 36 via Notification No. 34/98-C.E.