Central Excise Duty now applies at both roll clearance and finished car matting manufacture after Modvat extension. The circular clarifies that conversion of non-woven floor-covering rolls into car mattings produces distinct marketable products, creating separate liabilities: Central Excise Duty is payable on non-woven material in rolls when cleared from the factory and again on car mattings subsequently manufactured from those duty-paid rolls; earlier contrary guidance is withdrawn and assessments are to follow these revised instructions.
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Provisions expressly mentioned in the judgment/order text.
Central Excise Duty now applies at both roll clearance and finished car matting manufacture after Modvat extension.
The circular clarifies that conversion of non-woven floor-covering rolls into car mattings produces distinct marketable products, creating separate liabilities: Central Excise Duty is payable on non-woven material in rolls when cleared from the factory and again on car mattings subsequently manufactured from those duty-paid rolls; earlier contrary guidance is withdrawn and assessments are to follow these revised instructions.
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