Circular No. 841/18/2006-Central Excise

6th December  2006

F.NO. 21/6/2006 – CX 1

Government Of India

Ministry Of Finance

Department Of Revenue

Central Board Of Excise & Customs

Subject: Ready to eat and packaged Namkeens, Bhujia etc. falling under tariff item 2106 90 99 of the Central Excise Tariff, whether eligible for full exemption under Sr. No. 29 of notification no. 3/2006-CE dated 1.3.2006 or attract 8% duty under Sr. No. 30 of the said notification.

I am directed to say that references have been received from field formation seeking clarification as to whether ready to eat packaged food items like namkeen, bhujia etc. are eligible for full exemption or are liable to 8% excise duty under notification No. 3/2006-CE dated 1.3.2006.   Sr. No. 29 and Sr. No.30 of the  notification No. 3/2006-CE  grant following exemptions:

S. No. Chapter or heading or sub-heading or tariff item of the First Schedule Description of excisable goods Rate Condition No.
(1) (2) (3) (4) (5)
29. 2106 90 Sweetmeats (known as ‘misthans’ or ‘mithai’ or by any other name), namkeens, bhujia, mixture, chabena and similar edible preparations in ready for consumption form, papad and jal jeera Nil
30. 2106 90 99 Ready to eat packaged food 8%

2.  Further, the supplementary Chapter Note 6   of Chapter 21 of  the Central Excise Tariff reads as under:

6. Tariff item 2106 90 99 includes sweet meats commonly   known as    “Misthans”  or “Mithai” or called by any other name. They also include products commonly known   as “Namkeens”,  “mixtures”,  “Bhujia”,  “Chabena”  or called  by  any  other name.  Such products  remain  classified  in  these  sub-headings  irrespective of  the nature  of  their ingredients.

It is noticed that doubts have been expressed in view of the fact that the goods like ready to eat packaged namkeen,bhujia,etc, conform to the  description provided at both Sr. Nos. 29 and 30 of  the notification no. 3/2006-CE dated 1.3.2006.   A question arises  as to whether such goods would attract nil rate of duty under Sr. No. 29 or 8% duty under Sr. No. 30.

3. The matter has been examined .As the same items fall under two entries of the notification, the exemption of nil rate of duty would be available to goods covered by    Sr. No. 29 of notification No. 3/2006-CE  dated 1.3.2006 ,  even when  the said goods are also covered by   Sr. No.30.

4.  However, if the goods are ‘ready to eat packaged food’ falling under tariff item 2106 90 99 but which are not covered by the description provided at  Sr. No. 29 of the notification, then the  effective rate of duty will be  8% as provided at Sr. No. 30 of the  notification  .

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