Central Excise - Eligibility for exemption for sodium carboxy methyl cellulose under Notification No. 212/87-C.E., dated 11-9-1987- Question regarding - Clarification thereof - Regarding - Central Excise - 4/93-CX.3

Central Excise - Eligibility for exemption for sodium carboxy methyl cellulose under Notification No. 212/87-C.E., dated 11-9-1987- Question regarding - Clarification thereof - Regarding Circular No. 4/93-CX.3 dated 10-12-1993 [From F. No. 93/14/93-CX.3] Government of India Central Board of Excise Customs New Delhi Subject : Central Excise - Eligibility for exemption for sodium carboxy methyl cellulose under Notification No. 212/87-C.E., dated 11-9-1987- Question regarding - Clarification thereof - Regarding. Representation has been received from Oil Natural Gas Commission regarding availability of concessional rate of 10% Cellulose (Sodium CMC) in terms of Notification No. 212/87-C.E., dated 11-9-1987 (Sr. No. 36) which the Central Excise Authorities are not allowing on the ground that the product being supplied to M/s. ONGC is Sodium CMC and not CMC which is entitled for the benefit of concessional rate of duty in terms of the said notification. M/s. ONGC are obtaining Sodium CMC from various suppliers and using the same in their Grilling Operations. 2. CMC is classifiable under sub-heading No. 3912.31 of the Central Excise Tariff Act, 1985. "Notification No. 212/87-C.E., dated 11-9-1987 provides concessional rate of duty i.e. 10% to CMC supplied to ONGC or Oil India Ltd. subject to Chapter X procedure being followed. However, Notification No. 53/88-C.E., as amended, provides concessional rate of duty i.e. 20% to Sodium CMC (Sr. No. 21) without any stipulation. By a strict interpretation of Notification No. 212/87-C.E., only CMC is covered and its salts are not covered. 3. The matter has been examined by the Board in consultation with the Chief Chemist, CRCL, New Delhi. The Chief Chemist has opined that according to technical literature, sodium carboxy methyl cellulose is a water soluble anionic linear polymer. It is universally known as CMC. CMC is manufactured by treatment of cellulose with aqueous sodium hydroxide followed by reaction with sodium chloro acetate. According to McGraw Hill Dictionary of Scientific and Technical Terms, carboxy methyl Cellulose is an acid ether derivative of cellulose used as sodium salt. The common salt of carboxy methyl cellulose is sodium carboxy methyl cellulose. However, other salts of CMC like potassium salt, calcium salt etc., are also possible. 4. In view of the above information, Chief Chemist has observed that sodium carboxy methyl cellulose merits consideration as CMC. 5. The Board has accepted the opinion of Chief Chemist, CRCL, New Delhi in the matter and is of the view that the intention of the said notification is to cover within its purview Sodium Carboxy Methyl Cellulose which is also commonly called as Carboxy Methyl Cellulose. 6. All pending assessment may be finalised on the above basis. Lower field formations may be advised suitably. The trade may also be informed accordingly.