Exemption of excise duty on tow arising during course of manufacture of polyester staple fibre (PSF) or polyester filament yarn (PFY) – CBEC Clarifies

F.No. 345/2/2013-TRU

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
TAX RESEARCH UNIT
ROOM NO. 1461, NORTH BLOCK
NEW DELHI

Dated: September 22, 2014

To

Chief Commissioners of Central Excise (All)
Chief Commissioners of Central Excise, Customs & Service Tax (All)
Director General, Directorate General of Central Excise Intelligence
Director General, Directorate General of Revenue Intelligence

Subject : Exemption of excise duty on tow arising during the course of manufacture of Polyester staple fibre (PSF) or polyester filament yarn (PFY), manufactured from plastic scrap or plastic waste including waste polyethylene terephthalate bottles – Regarding.

Your attention is invited to letter of even number dated 14 th March, 2014 (copy enclosed) on the above mentioned subject. It was then requested to keep the show-Cause Notices issued to raise demand in this regard in Call Book until further instructions from the Board.

2. In the Budget 2014-15, excise duty on Polyester Staple Fibre (PSF) and Polyester Filament Yarn (PFY) manufactured from plastic waste or scrap or plastic waste including waste polyethylene terephthalate (PET) bottles (which was already exempt w.e.f. 08.05.2012) has been exempted retrospectively w.e.f. 29.06.2010 to 07.05.2012 [section 110 of the Finance (No. 2) Act, 2014 refer]. Intermediate product, “Tow” arising during the course of manufacture of such PSF/PFY has also been exempted retrospectively w.e.f. 29.06.2010 to 10.07.2014 so as to provide relief to the manufacture of such PSF/PFY [section 110 and 111 of the Finance Act (No.2) Act, 2014 refer].

3. It is requested that Show Cause Notices may be disposed off in accordance with the provisions mentioned in paragraph 2 above.

(Alok Shukla)
Joint Secretary (TRU)

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