| Date: |
07-11-2014
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| Notification No: |
Central Excise Circular No. 989/07/2014-CX
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| Issuing Authority: |
Central Excise
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| Type: |
Circular
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| File No: |
F. No. 103/02/2012-CX.3 |
| Subject: |
Regarding excisability of Odoriferous compound/agarbathi mix arising during the course of manufacture of agarbathi
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Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
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Circular No.: 989/13/2014-CX.3
Dated:07.11.2014
Sub: Excisability of Odoriferous compound/agarbathi mix arising
during the course of manufacture of agarbathi – regarding.
Attention is invited to Board’s
circular no. 495/61/99-CX.3 dated 22.11.1999
(issued from F.No. 103/6/98-CX.3) regarding the above subject. It was clarified
therein that ‘Odoriferous Compound’ is normally used in the manufacture of
Agarbathis in a continuous manner. The formula of preparation of such compounds
is kept a secret. Such odoriferous substances which are not capable of being
bought and sold in the market in normal course of trade are not excisable
products.
- It has been reported that some manufacturers of such odoriferous
compounds have claimed non-excisability on the ground that such compounds
are a trade secret, not sold in the market and hence not excisable. This is
despite the fact that such compounds have shelf life and are capable of
being marketed as a distinct identifiable commodity.
- It may be noted that Section 2(d) of the Central Excise Act, 1944 has
been amended in 2008 to insert a deeming fiction regarding marketability.
Specific cases have been detected, where intermediate masala mix has been
found to be actually bought and sold. It is therefore clarified that Board’s
Circular No. 495/61/1999-CX.3 dated 22.11.1999 is applicable only to such
intermediate compound or odoriferous compounds as are not capable of being
bought and sold. In cases where on the basis of evidence it is established
that such intermediate compounds are capable of being marketed, the same
will be excisable, irrespective of whether the compound is actually marketed
or not.
- Trade and field formations may be suitably informed.
F. No. 103/02/2012-CX.3
(Shankar Prasad Sarma)
OSD, CX.3
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