C.NO.1/54-STT/98, Dated 30th November, 1998.

I am directed to refer to your letter No Nil dated 08.09.1998 on the above subject and to say that cards incorporating electric integrated circuits falling under PCT heading 8542.1200 while cards incorporating magnetic strips are classified under PCT heading 8523.3000 and 8523.6000, depending upon whether these are recorded or un-recorded. 2. The import, local production and supply of such cards are liable to sales tax being not exempt. However, the assessable value shall not be the face-value of the card but the duty-paid value under section 25 or section 25-B of the Customs Act, 1969, in case of imported un-activated cards. In case of locally produced activated cards, the price paid by you to the local manufacturer of such un-activated…