F. No. 14/3/90-CX1
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Excise and Customs, New Delhi
Subject : Sugar Syrup produced in the intermediate stage in the manufacture of Aerated water and Ayurvedic Medicines under sub-heading 1702.30 of Central Excise and Tariff Act, 1985.
I am directed to refer to Circular No. 9/89 (F.No.14/10/8-CX-1) dated 25.7.89 on the subject noted above and to say that the matter has been further examined by the Board.
2. In this case the Deputy Chief Chemist has opined that sugar syrup is prepared by dissolving sugar in water at a temperature of 80oC with the addition of citric acid, activated carbon and decamol. Activated carbon is used to remove odours and colour, decamol functions as a filter aid and citric acid is mainly a preservative. The resultant solution which is obtained as an intermediate product after filtration, is a sugar syrup; according to technical literature it has a shelf life.
3. Sugar syrup has been mentioned as excisable goods under sub-Heading No. 1702.30 in the Central Excise Tariff and a rate of duty has also been prescribed for it. Since the product has a shelf life, it is marketable.
4. In view of the position explained above and in supersession of Board”s Circular No. 9/89-CX.1 (F.No.14/10/88-CX.1) dated 25.7.89, it is clarified that sugar syrup produced in intermediate stage in the manufacture of aerated water/ayurvedic medicines is an excisable item and is liable to pay duty under Sub-heading No.1702.30.
