| Date: |
30-10-1996
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| Notification No: |
Central Excise Circular No 256/1996
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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 Henna Powder
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Classification of Henna Powder
Circular
No. 256 dated 30th October 1996
I
am directed to say that a doubt has been raised on the classification of Henna
Powder made out of natural henna leaves by the leaves by the process of grinding
or pulverising. The Ntfn. No. 13/95-CE dt. 16.3.95 exempted Henna Powder
considering it classifiable under Chapter 32. After rescinding of Ntfn. No.
13/95-CE vide Ntfn. No. 19/96-CE dated 23.7.96, Henna Powder if classifiable
under Chapter 32 has become liable to duty at 20% adv. Consequently,
representations have been received from the trade contending the classification
of the side henna powder under Chapter 14.
The
matter has since been examined in the Board. The Board has observed that the
CEGAT Special Bench-C, New Delhi in its order No. 27/93-C, dated 11.2.93 in
Appeal No. E/ 1666/92-C in case of Henna Export Corporation v. CCE "1993
(67) E.L.T. 907 (Tribunal)" has held that Henna powder in dulk is
classifiable under Chapter Heading 14.01 of the Central Excise Tariff Act, 1985
and that in unit packings with indication to its use as a hair dye is
classifiable under Heading 33.05 of the CET. The Appeal filed by the party
before the Hon'ble Supreme Court against the said order of the CEGAT has been
dismissed vide its order dated 1.5.95.
The
Board has accepted the above said judgement of the CEGAT. There fore, the
classification of the said goods. i.e. Henna powder be decided in the light of
the above said judgement of the CEGAT.
This
may be brought to the notice of the field formations.
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