Central Excise - Spent Fuller's earth - Classification under heading No. 15.07 or under Chapter 23 - Question regarding - Central Excise - 34/88

Central Excise - Spent Fuller's earth - Classification under heading No. 15.07 or under Chapter 23 - Question regarding Circular No. 34/88 Dated 15-12-1988 [From F. No. 90/7/88-CX.3] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Spent Fuller's earth - Classification under heading No. 15.07 or under Chapter 23 - Question regarding. A doubt had been raised as to whether spend Fuller's earth would be classifiable under heading 15.07 or under Chapter 23 of the C.E.T. The matter came up for discussion at the South Zone Tariff-cum-General Conference of Collectors of Central Excise held at Bangalore on 4th and 5th October, 1988. It was pointed out at the Conference that there is divergent assessment practice with regard to spent fuller's earth. Fuller's earth is exempt as per the provisions of Notification No. 23/55-CE dated 29-4-55, as amended, without any classification for such Fuller's earth being mentioned in the said Notification. However, as Fuller's earth stands clearly classified under sub-heading No. 2508.20 of the H.S.N., it will remain covered under sub-heading No. 2505.00 of the C.E.T. The spend fuller's earth is the residue of the Fuller's earth. Fuller's earth as such is used for decolourising V.N.E. oils and during the process it loses its activity. This is known as spent Fuller's earth. It is a residue resulting from treatment of fatty substances. The spend Fuller's earth is rightly classifiable under Heading No. 15.07 in view of the fact that this heading specifically covers residues resulting from treatment of fatty substances. This view is supported further by the H.S.N. Explanatory Notes (B)(6) at page 121 under H.S.N. heading 15.22 relating to residues resulting from the treatment of fatty substances which, inter-alia, includes used decolourising earths containing fats etc. Heading 15.22 of the H.S.N. corresponds to heading 15.07 of the C.E.T. In view of this the Conference concluded that spent Fuller's earth is correctly classifiable under heading No. 15.07. Accordingly, it is hereby clarified that spent Fuller's earth would be correctly classifiable under heading No. 15.7 of the C.E.T. The above guidelines may be brought to the notice of the lower field formations and the trade interest also may be suitably advised. All pending assessments may be finalised on the above basis.