Circular No. 256/90/96-CX
dated 30/10/96
F.No. 14/5/96-CX.I

Government of India

Ministry of Finance, Department of Revenue

Central Board of Excise & Customs, New Delhi

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Subject: Classification of Henna Powder.

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 Notfn. No. 13/95-CE dt. 16.3.95 exempted Henna Powder considering it classifiable under Chapter 32. After rescinding of Notfn. No. 13/95-CE vide Notfn. 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.

(S.C. Bhatia)
Under Secretary to the Govt. of India

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