Central Excise - Sr. No. 39 of Notification No. 53/88-C.E., dated 1-3-1988 before amendment by Notification No. 133/88-C.E., dated 15-3-1988 - Doubts as to whether the exemption was its available to the goods in question when manufactured out of duty-paid plastic materials of headings Nos. 39.01 to

Clarification Issued: Excise Duty Exemption for Plastic Goods Made from Duty-Paid Materials or Scraps.

The circular addresses confusion regarding the applicability of an excise duty exemption for certain plastic goods manufactured between March 1, 1988, and March 14, 1988. Initially, the exemption required goods to be made from both duty-paid plastic materials and plastic scraps due to a drafting error using the word 'and' instead of 'or.' This was corrected on March 15, 1988. The Board clarifies that the exemption should apply if goods are made from either material, aligning with longstanding policy. Pending assessments should be finalized based on this clarification, and trade interests should be informed accordingly.