Central Excise - Classification of 'Soft Finish Mixture' - Clarification regarding - Central Excise - 23/90-CX.3

Central Excise - Classification of 'Soft Finish Mixture' - Clarification regarding Circular No. 23/90-CX.3 Dated 26-4-1990 [From F.No. 126/5/90-CX.3] Subject : Central Excise - Classification of 'Soft Finish Mixture' - Clarification regarding. Doubts have been expressed regarding the classification of 'Soft Finish Mixture' which is used in the textile industry for giving scrooping and lubricating effect to staple fibre. The main ingredients used in the manufacture of 'Soft Finish Mixture' are reported to be surface active agents falling under Heading No. 34.02. 2. The matter has been examined. It is reported that the product 'Soft Finish Mixture' is used for giving scrooping and lubricating effect to staple fibre. Heading No. 34.02 covers, inter-alia, organic surface active agents, other than soap, and surface active preparations. On the other hand, Heading No. 38.09 covers, inter-alia, products and preparations of a kind used in the Textile Industry, not elsewhere specified or included. As per the Explanatory Notes under Heading No. 38.09 of HSN, the Heading covers a wide range of products and preparations, of a kind generally used during processing or finishing yarns, fabrics, paper, paper boards, leather or similar materials, not specified or included elsewhere in the nomenclature. The reported use of the product.'Soft Finish Mixture' would answer the description of Heading No. 38.09 of HSN. As Chapter 38 of CET is aligned with Chapter 38 of HSN the product would merit classification under Heading No. 38.09 of CET. Further, as per the exclusion clause, under Heading No. 34.02 of HSN, preparations containing surface active agents where the surface active function is either not required or is only subsidiary to the main function of the preparation are excluded from the Heading No. 34.02. The product under reference reportedly contains surface active agents, but their function would only be subsidiary as the product is specifically meant for imparting scrooping and lubricating effect to staple fibre. In view of this position, it is clarified that the appropriate classification of 'Soft Finish Mixture' would be under Heading No. 38.09 of Central Excise Tariff, 1985. 3. The above clarification may be brought to the notice of the lower filed formations and the trade interets may also be suitably advised. 4. All pending asessments may be finalised on the above basis.