Central Excise - Classification of Printing paste - Forwarding of Order No. 2/93 (See. 37B), dated the 21st April, 1993 - Regarding. Order No. 2/93 (Section 37B) - Central Excise - 2/93

Central Excise - Classification of Printing paste - Forwarding of Order No. 2/93 (See. 37B), dated the 21st April, 1993 - Regarding. Order No. 2/93 (Section 37B) Circular No. 2/93 Dated 21-4-1993 [From F. No. 95/7/92-CX.3] Government of India Central Board of Excise Customs New Delhi Subject : Central Excise - Classification of Printing paste - Forwarding of Order No. 2/93 (See. 37B), dated the 21st April, 1993 - Regarding. Order No. 2/93 (Section 37B). After the issue of Order No. 5/92 (Section 37B) dated 28-5-92 regarding classification of "printing paste", representations have been received contending inter-alia that all the products used by printing industry for purpose of printing textiles are being classified under Sub-heading No. 3204.29 of the Schedule to the Central Excise Tariff Act, 1985 (henceforth referred to as Tariff). 2. The matter was re-examined in consultation with the Chief Chemist. 3. Printing paste is obtained from both unformulated, unstandardised or unprepared forms of synthetic organic dyes and formulated, standardised or prepared forms. Printing paste contains synrthetic organic dyes, kerosene oil, urea, water, enulsifier, binder and catalyst etc. The process of manufacture involves intimate mixing of all these ingredients in the form of dispersion and the solvent is used to increase the solubility of dyestuff, or colouring matter. The goods are steamed or otherwise treated to cause the dyes to transfer to and penetrate the fabric, the residue of the paste is removed in the finishing. 4. 'Note 6 of Chapter 32 stipulates that in relation to synthetic organic dyes of Heading 32.04 conversion of unformulated, unstandardised or unprepared forms (e.g. wet cake) of such dyes by (a) reduction in particle size, (b) addition of dispersing agents or diluents, or (c) adoption of any other treatment into formulated, standardised or prepared forms ready for use in the process of dyeing shall amount to "manufacture". By virtue of this, only unformulated, unstandardised or unprepared forms of dyes when converted into formulated, standardised or prepared forms ready for use in the process of dyeing by addition of dispersing agents or dilluents, etc., would amount to 'manufacture'. 5. Keeping this in view, it is hereby clarified that the printing paste prepared from formulated, standardised or prepared dyes by simple mixing with other materials shall not amount to manufacture and as such, not be classifiable under Sub-heading No.3204.29 of the Tariff. 6. This order is issued in exercise of the powers conferred under section 37B of the Central Excises and Salt Act, 1944 (1 of 1944) for the purpose of ensuring uniformity in the classification of excisable goods. It is further ordered that a copy of this order be sent to all Collectors of Central Excise for being observed and followed and for being made available to all other persons employed in the execution of the Central Excises and Salt Act, 1944 and for issue of trade notices.