| Date: |
06-02-2002
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| Notification No: |
Central Excise Circular No 616/2002
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| Issuing Authority: |
Central Excise
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| Type: |
Circular
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| File No: |
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| Subject: |
Classification of Shikakai Powder under Chapter 14 or Chapter 33 of CET Act
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Classification of Shikakai Powder under Chapter 14 or Chapter 33 of CET
Act
Circular No. 616
dated 6th February 2002
A doubt has been raised as to whether Shikakai
Powder would be classifiable under Chapter 14 or Chapter 33 of Central Excise
Tariff Act.
2. ��� In this regards, attention is drawn to
judgement dated 3.2.99 of the High Court of Karnataka in Writ appeal No. 1413
and 1736 of 1998 in the case of the Karnataka Soapnut Powder Manufacturers�
Association. It has been held, inter-alia, by the High Court that the
preparation of the Shikakai Powder from Shikakai amounts to manufacture. The
Shikakai Powder would come within the ambit of Chapter 33 of the Central Excise
Tariff Act. The appeal filed by the Association before the Supreme Court
against the said order has been dismissed by the Supreme Court.
3.���� Board has accepted the judgement dated
3.2.99 of the High Court of Karnataka, upheld by the Supreme Court.
Accordingly, it is clarified that Shikakai Powder would be classifiable under
Chapter 33 of CETA and chargeable to excise duty.
4.���� The above clarification may be brought to
the notice of the lower field formation and trade interests may also be
suitably advised.
5.���� All pending
disputes/ assessments on the issue may be settled in the light of the above
guidelines. Receipt of this circular may be please acknowledged.
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