Circular No 616/7/2002-CX,
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Subject: Classification of Shikakai Powder under Chapter 14 or Chapter 33 of CET Act.
A doubt has been raised as to whether Shikakai Powder would be classifiable under Chapter 14 or Chapter 33 of Central Excise Tariff Act
2. In this regard, attention is drawn to judgement dated 3-2-99 of the High Court of Karnataka in Writ Appeal Nos. 1413 and 1736 of 1998 [1999 (111) E.L.T. 27 (Kar.)] in the case of the Karnataka Soapnut Powder Manufacturer”s Association. it has been held, inter alia, by the High Court that the preparation of the Shikakai Powder from Shikakai amounts to manufacture. The Shikakai Powder would come within the ambit of Chapter 33 of Central Excise Tariff Act. The appeal filed by the Association before the Supreme Court against the said order has also been dismissed by the Supreme Court.
3. Board has accpeted the judgement dated 3-2-99 of the High Court of Karnataka, upheld by the Supreme Court. Accordingly, it is clarified that Shikakai Powder would be classified under Chapter 33 of CETA and charegeable to excise duty.
4. The above clarification may be brought to the notice of the lower field formation and trade interests may also be suitably be advised.
5. All pending disputes/assessments on the issue may be settled in the light of the above guidelines. Receipt of this circular may be please acknowledged.
5. Hindi version will follow.