Circular No. 477/43/99-Central Excise
dated 10/8/1999
F.No.134/3/98-CX.4
Government of India
Ministry of Finance
Department of Revenue,
Central Board of Excise & Customs, New Delhi
Subject : CE – Chapter 68 – Notification No. 5/99 (S.No. 179) – method of calculation of percentage of fly ash in asbestos cement products – regarding –
I am directed to say that it has been brought to the notice of the Board that there is non-uniformity in the practice with regard to determination of percentage of fly ash in the asbestos cement products for the purpose of eligibility of exemption under Notification No. 60/91 and succeeding notifications presently Notification No. 5/99 (S.No. 179). Some Commissionerates, reportedly have taken a view percentage of fly ash should be determined taking into account weight of all the raw materials including water used in the manufacture whether contained or not in the final product, whereas some others have taken a view that water content should not be considered for the purpose of calculating the proportion of fly ash. Some Commissionerates are calculating the percentage with reference to the weight at the wet stage and others at the dry stage of asbestos cement products.
2. The matter has been re-examined by the Board and it is clarified that the percentage by weight of fly ash has to be calculated taking into account the weight of fly ash used with reference to the weight of the finished product in dry condition i.e. weight of fly asb x 1000/weight of asbestos cement products. The Commissioner may keep the proforma as prescribed under Board”s Circular No. 6/92 dated 21/10/92 issued from F.No. 134/7/92-CX.4 in mind while specifying the accounts to be maintained by the manufacturers.
