DRAFT CIRCULAR
(To elicit response/Comments only)
Disclaimer:- This Draft Circular has been put up only to elicit public response. No final decision has been taken by Government/ Board. Government/ Board will proceed further in the matter only after due examination of the responses received.
Responses to the draft circular may please be sent to dscx4cbec@yahoo.com or faxed at 011-23092965 by 10.11.2006.
Circular No…../…./2006-CX
….November , 2006
Subject: Ready to eat packaged Namkeen, 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.
F.No. 21/6/2006-CX.1
Government of India
Ministry Of Finance
Department Of Revenue
Central Board of Excise & Customs
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 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, then the effective rate of duty will be 8% as provided at Sr. No. 30 of notification No. 3/2006-CE dated 1.3.2006. Examples of some of such items are ‘alu-mutter’, ‘palak-paneer’, etc., which are sold in packaged condition and are consumed directly after heating.
5. Field formations may be suitably informed.
6. Hindi version will follow.
7. Receipt of this Circular may kindly be acknowledged.
(Gaurav Sinha)
Under Secretary (CX.1)
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