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Classification � UPS - Classifiable under heading 8543.89 of CTA, 1975
& 8543.00 of CETA, 1985
Circular No. 22 dated 22nd March
2000
It is directed to
refer to Board�s circulars No. 25/ 96-Cus. dated 24.4.96 and 151/ 2/ 98-CX. 4
dated 26.8.98, on the subject mentioned above.
2. Vide
Circular No. 25/ 96-Cus. dated 24.4.96, it was clarified that UPSS would be
classifiable under sub-heading 8543.89 of the Customs Tariff and under
sub-heading 8543.00 of the Central Excise Tariff, as per the decision of CEGAT
in the case of J. K. Synthetics Ltd. [1995 (80) ELT 208 ET]. The CEGAT, in the
case of Mangalore Chemical and Fertilisers Ltd., [1997 (93) ELT 548], decided
that UPSS would be classifiable under heading 85.04 of the Customs Tariff.
However, in view of the earlier conflicting judgement in the case of J. K.
Synthetics, the issue was referred to the larger bench of CEGAT.
3. Subsequently,
vide Board�s letter No. 151/ 2/ 98-CX. 4 dated 26.8.98, following the order of
Hon�ble Delhi High Court, it was clarified that UPSS, shall be cleared under
heading 85.04, taking a Bond and Bank Guarantee for differential duty, pending
decision of the appeal filed in Hon�ble SC in the case of J. K. Synthetics
case or decision by a larger bench of CEGAT.
4. It
has now been brought to the notice of the Board that, in the case of Tata Libert
Ltd. Vs. Commissioner of Central Excise, Mumbai [1999 (35) RLT933], the larger
bench of CEGAT, vide order dated 07.12.99, has held that the UPSS will fall
under heading 85.43, as decided earlier in the case of J. K. Synthetics.
5. Hence,
in supersession of the earlier circulars, it is hereby clarified that the UPSS
will merit classification under sub-heading 8543.89 of the Customs Tariff and
heading 8543.00 of the Central Excise Tariff. All pending assessments may be
finalised and Bank Guarantees taken may be enforced to recover differential
duty.
Any difficulty encountered may be brought to the notice of the Board
immediately.
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