Circular No. 840/17/2006-Central Excise
F.No.81/4/2004-CX.3
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
6th December, 2006
Subject:- Classification of handmade biris, using printed labels/ wrappers made with the aid of machines by job workers.
Certain manufacturers of biris purchase tobacco, obtain tendu leaves and make biris by rolling the tobacco in tendu leaves. This process is done without using any machine. The printed labels/ wrappers used for packing the biris are either purchased from the market or got manufactured on job work basis by sending the paper to the job workers by the manufacturers of biris. Biris manufactured with the aid of machines and without the aid of machines are classified under two separate tariff items of the Central Excise Tariff i.e.2403 10 39 and 2403 10 31 respectively.
2. In this regard, a doubt has arisen as to whether the handmade biris packed with the wrappers/labels which are manufactured with the aid of machines by the job workers are to be classified under Tariff item 2403 10 31 as biris manufactured without the aid of machines or under Tariff item 2403 10 39 as biris manufactured with the aid of machines.
3. The issue has been considered by the Board. The Tribunal in the judgement in the case of M/s. Ajanta Sada Biri Co.[1997(95)ELT 513(T)], had held on similar facts that where labels were manufactured by job worker with the aid of machines, the biris will still be considered manufactured without the aid of machines.
4. After taking into account the various judicial pronouncements and the fact that rolling and other processes involved in the manufacture of biris per se are not carried out with the aid of machines, the Board is of the view that in such circumstances, it is legal and proper to classify such biris manufactured without the aid of machines under Tariff item No 2403 10 31, even if the labels/ wrappers are manufactured with the aid of machines by the job workers.
5. The above clarification in respect of biris may be brought to the knowledge of trade and field formations suitably.
6. Pending issues may be finalized accordingly.
