CUS CIR NO. /2004 DATE 2004

Admissibility of benefit of Notification No. 6/2002-C.E., dated 1.3.2002 (sl.no.63) on "Dant Mukta" used in the manufacture of Lal Dant Manjan - reg.
I am directed to say that divergence of practice regarding admissibility of benefit of Notification No. 6/2002-C.E., dated 1.3.2002 (sl.no.63) on "Dant Mukta" which is used in the manufacture of Lal Dant Manjan has been brought to the notice of the Board.

2. Central Excise Notification No. 6/2002-CE, dated 1.3.2002, SI.No. 63, covers 'Tooth Powder' falling under CETH 33.06. Although the subject notification doesn't specify any subheading, the Central Excise Tariff specifies heading 3306.10 for 'Tooth Powder and Tooth Paste'. It, thus implies that for coverage under the said Notification, the goods should be classifiable under CTH 3306.10. Therefore, the issue under reference relates to classification of 'Dant Mukta' under CETH 3306.10 as against 3306.90. This entry of the Notification 6/2002-CE is worded exactly similar to the earlier exemption vide Notification No. 6/2000-CE, dated 1.3.2000 (sl.no.51).

3. Tariff Unit, CBEC had earlier issued a clarification dated 4th March, 2003 regarding classification of 'Dant Mukta'. This clarification did not deal with the matter of admissibility of notification benefit on 'Dant Mukta' and it was limited to its classification as a 'dental hygienic agent' of Ch.33 as against 'medicament' of Ch.30.

4. Classification of 'Dant Mukta' under heading 3306.10 or 3306.90 would depend upon whether in the form as presented, 'Dant Mukta' can be treated as dental powder. If found so, it would be eligible for the notification benefit.

5. This matter was discussed at the Tariff Conference of Chief Commissioners of Customs held at Shillong from 13th - 15th May, 2004 [Agenda Point N-1].

6. The Conference noted that the CEGAT had decided in case of Dant Shakti that it would be appropriately classifiable under CTH 33.06. Since Dant Shakti and Dant Mukta are similar products, classification of Dant Mukta would also fall under CTH 33.06. However, since the notification specifically requires that the goods should be tooth powder, Dant Mukta being a raw material for the manufacture of ' LaI Dant Manjan', would not qualify for the benefit.

7. It was, accordingly, decided at the Conference that 'Dant Mukta' is not eligible for benefit under Notification No. 6/2002-C.E., dated 1.3.2002, SLNo.63.

F. No. 528/93/2004-Cus (TU)

Yours faithfully,

(H.K.SHARMA)
STO (TU)
Fax/Ph. 2309 3859

Presented by eximkey.com