| Date: |
11-03-1999
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| Notification No: |
Central Excise Circular No 443/1999
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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: |
Regarding Central Excise - Levy and collection of Cess on 'Instant Tea'
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Regarding Central Excise - Levy and collection of Cess on 'Instant Tea'
Circular
No. 443 dated 11th March 1999
It
has been brought to the notice of the Board that cess is not being collected on
'Instant Tea' under the provisions of the Tea Act, 1953 resulting into various
Audit Objections.
2.
The matter has been examined in the Board. Section 3 (n) of the Tea Act,
1953 specifically lays down that tea covers all varieties of the product
commercially known as tea. 'Instant Tea' is an extract from green tea leaves or
black tea in the form of a fine powder with low moisture content and is free
flowing. As 'Instant Tea' is also commercially known as tea, it shall fall
within the definition of Tea under Section 3 (n) of Tea Act, 1953. Accordingly,
it shall be liable to cess in terms of Section 25 of the Tea Act, 1953.
3.
All pending disputes may be decided in light of the above clarification.
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