Circular No. 24/24/94-CX
Government of India
Ministry of Finance, Department of Revenue,
Central Board of Excise & Customs, New Delhi
Subject: Central Excise-Bright Steel Bars-Eligibility of exemption in terms of provisions of the notification No. 202/88-CE dated- 20.5.88
Representations have been received that benefit of Notification No. 202/88- CE has been denied to the product commercially known as bright bars. In Rajkot Collectorate a view has been taken that bright bars are covered under the expression “Other bars and rods” referred at note I (m) of Chapter note to Chapter 72 and are not entitled for exemption under Notification No. 202/88-CE which covers only bars and rods referred at Chapter note 1(1) of Chapter 72. In Bombay the grounds for denial of benefit under Notification No. 202/88-CE are that bright bars are covered by the expression “further worked” and hence not entitled for benefit of Notification No. 202/88-CE.
2. For the manufacture of bright bars, black bars/black steel bars are first dipped in tanks of acid to remove rust, scaling etc. on its surface. Thereafter, the surface defects, viz. chips, orality, etc. are smoothed out by putting them in a bench. Then the said bars are straightened and polished on the surface by scrubbing process. After pickling treatment, the bars are immersed in lime solution to remove the acidic effect of sulphuric acid. Thereafter, the bars are taken to the drawing machine for cold drawing process where these bars are drawn through the dies of the required dimensions. After cold drawings, bright bars come into existence, which are further subjected to the process of surface smoothening, polishing and straightening before the same are ready for clearance from the factory.
3. The matter has since been examined. From the manufacturing process it is observed that bright bars are cold rolled/cold formed/cold finished bars and are eligible for benefit of Notification No. 202/88-CE.
4. It is hereby clarified that cold rolled/cold formed/cold finished bars and commercially known as bright bars are eligible for benefit of Notification No. 202/88- CE dated 20.5.1988.
Deputy Secretary to the Govt. of India