Circular No. 65/65/94-CX
Dated 7/10/94

F.No.102/10/94-CX-3

Government of India

Ministry of Finance

(Department of Revenue)

Central Board of Excise and Customs, New Delhi

Subject : Classification of Isabgol Husk under Central Excise, Tariff calrification regarding

Representations have been received from Isabgol processors Association relating to leviability of excise duty on Isabgol Husk which is obtained form isabgol seeds. The filmy upper layer of the seeds is separated by the process of milling  and purified by sieving and winnowing. It is packed in plastic poly packs for retail sale in the market. The registered trade mark is also printed on the pack of the Isabgol Husk. A view has been taken in the Ahmedabad Collectorate that it is a pharmaceutical product under chapter 30 of the Central Excise Tariff as Isabgol Husk has therapeutic or prophylactic uses. Isabgol Husk is generally taken with water, milk and other liquid beverages.

2. The matter has since been examined. In chapter 12 of HSN Notes under heading 12.11 “Plantago Psyllium; Herbs and Seeds” are specially included. This item refer to Isabgol. The Board is now of the view that the process of removal of Husk from the seeds of Isabgol cannot be regarded as process of manufacture and the product emerging out of such process would not, therefore, be exciseable. Hence, Isabgol Husk would not fall under Chapter 30 of Central Excise Tariff.  However, Isabgol Husk when mixed with other products and sold as a formulation claiming therapeutic and prophylactic values, then it would be treated as product falling under Chapter 30 of Central Excise Tariff.

3. All pending assessment may be finalised on the above basis.  Lower field formations may be advised suitably.  The trade may also be informed accordingly.

Sd/-
(Arvind Singh)
Deputy Secretary (CX.3)

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