Under Board's Circular No. 128/39/95-dated 25.5.95, it was clarified that imitation or real zari made of gold, silver thread or man-made metallic yarn made out of duty paid polyester film (metallised / lacquered) namely kaseb, kalabatu. tilla, wire thread or zari thread and metallic yarn should be treated as 'handicrafts' for the purposes of Notification No. 76/86 dated 10.2.86.

        The Hon'ble Supreme Court in the case of CCE, New Delhi Vs. Lewis Shoppe & Anr. 1996 (10) CXLT (SC) CE- 277 = (1996) (13) RLT 507 (SC) has laid down that wooden furniture by itself can be treated as 'handicrafts' if the following tests are satisfied:-

"1.    It must be predominantly made by hand. It does not matter if some machinery is also used in the process.
 2.     It must be graced with visual appeal in the nature of ornamentation or -in-lay work or some similar work lending it an element of artistic improvement. Such ornamentation must be of a substantial nature and not a mere pretence."

        In the circumstances, it is hereby clarified that while deciding the case in view of the Board's  Circular referred to above, the criteria for any goods to be treated as 'handicrafts' laid down by the Hon'ble Supreme Court may also be kept in view.