Central Excise - Hypo Solution - Conversion of hypo into hypo solution whether amounts to manufacture - and if so, classification thereof clarification regarding - Central Excise - 49/90

Central Excise - Hypo Solution - Conversion of hypo into hypo solution whether amounts to manufacture - and if so, classification thereof clarification regarding Circular No. 49/90 Dated 31-8-1990 [From F. No. 119/2/89-CX.3] Government of India Central Board of Excise Customs New Delhi Subject : Central Excise - Hypo Solution - Conversion of hypo into hypo solution whether amounts to manufacture - and if so, classification thereof clarification regarding. A doubt has been raised as to whether making of 'hypo bath' (or hypo solution) from 'hypo' amounts to manufacture; and if so, under which Heading of CETA 1985 it would be classifiable. 2. The matter has been examined in the Board in consultation with the Chief Chemist, CRCL, Delhi. The opinion given by the Chief Chemist, CRCL in this matter is enclosed herewith. He has viewed that the photographic film negative upon removal from the developing solution is still sensitive to light as it contains undeveloped Salt, as well as to make it clear and transparent for printing, the action of the familiar fixing bath is employed. The said fixing solution contains other chemicals in addition to the hypo. It contains besides hypo the primary component, hardeners, bisulfite, buffers and may also contain boric acid which increases the fixing bath lifetime .and also decreases the propensity for alum hardeners to initial sludge formation. It is quite obvious from the above that fixing bath is specially formulated product and not a mere solution of 'hypo' in water. As such, the product 'Hypo bath' (or hypo solution) is a different manufactured product and not mere solution of 'hypo'. 3. The Board agrees with the above view of the Chief Chemist. Accordingly, it is clarified that conversion of hypo into hypo solution would amount to manufacture since hypo solution is different from hypo. 'Hypo bath' or 'hypo solution' would therefore merit classification as a separate manufactured product under Heading No.37.07 of the Schedule to the Central Excise Tariff Act, 1985. 4. 'Hypo' , if put up in measured doses and put up for sale by retail in a form ready for use, would also be classifiable under Heading No. 37.07 of the Schedule to the Central Excise Tariff Act, 1985, as unmixed product for photographic use. Otherwise, it would be classifiable under Heading No.28.32 of the Schedule to the said Act, as 'Thiosulphates'. This is also in conformity with HSN Explanatory Notes (Page 514). 5. Lower field formations may be advised accordingly and the trade interests also may be informed suitably. 6. All pending assessments may be finalised on the above basis.