Levy of cess of Tea Waste cleared for the manufacture of instant tea meant to be exported - Clarification regarding - Central Excise - 67/88

Levy of cess of Tea Waste cleared for the manufacture of instant tea meant to be exported - Clarification regarding Circular No. 67/88 Dated 9-1-1989 [From F. No. 262/18/88-CX.8 ] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Levy of cess of Tea Waste cleared for the manufacture of instant tea meant to be exported - Clarification regarding. I am directed to say that doubts have been raised whether the tea waste cleared under Rule 191B without payment of Central Excise duty for the manufacture of instant tea meant for export would be chargeable to cess or not. The matter has been examined in consultation with the Ministry of Law. The Law Ministry has opined that an exemption notification issued under Central Excise Act does not ipso facto become an exemption for the collection of cess. Cess is therefore leviable unless the same is specifically exempted under Central Excise Rules, 1944. Therefore for purposes of clearances of goods without payment of cess on tea waste (under bond) a separate notification will have to be issued under Rule 191B. Since no notification under Rule 191B permitting clearance of tea waste without payment of cess has been issued, the cess would be payable on tea waste even if such tea waste is cleared without payment of Central Excise duty under Rule 191B. The advice of Ministry of Law has been accepted by the Board.