Regarding excisability of odoriferous compound/ aggarbatis mix arising
during the course of manufacture of aggarbatis
Circular
No. 495 dated 22nd November 1999
It
has been brought to the notice of the Board that field formations are demanding
duty on the compound preparation arising during the course of manufacture of
Aggarbatis classifying them under heading 3302.90 of the Central Excise Tariff
as odoriferous compound.
2.
The matter has been examined in the Board. The Aggarbatis manufacturing
process involves simple mixing of a few aromatic chemicals with a base oil in a
container in liquid form which is mixed directly with the dough or applied on
Aggarbatis in the required proportion and such dough, mixed with the aromatic
compound; is used for rolling of Aggarbatis. The Aggarbatis manufacturers
normally carry out the whole process in a continuous manner in the course of
manufacture of Aggarbatis.
3.
Moreover, each brand of Aggarbatis has a different fragrance, which is on
account of the different formulation used by the manufacturers, which is
specific to that particular brand. Preparation of such odoriferous compound, substances
applied on the Aggarbatis varies from one Aggarbatis manufacturer to another.
Such preparations are not sold by them in the market so as to keep their
respective trade secrets. As the constituents, their proportions and formula of
preparation are kept as secret, such compounds cannot be considered to be
marketable in the commercial parlance.
4.
Accordingly, it is clarified that the odoriferous compound or Aggarbatis
dough mixed with odoriferous substances, not being capable of being bought and
sold in the market in the normal course of trade, is not an excisable product
and no duty is therefore, leviable on such compound arising during the course of
manufacture of Aggarbatis.
5.
Trade and field formations may be suitable informed.
6.
Receipt of this circular may please be acknowledged.
|