Central Excise - Chapter 27 - Non-levy of duty on Bituminous mixture falling under Sub-Heading No. 2715.90 of the CET - Regarding - Central Excise - 33/88-CX.3

Central Excise - Chapter 27 - Non-levy of duty on Bituminous mixture falling under Sub-Heading No. 2715.90 of the CET - Regarding Circular No. 33/88-CX.3 Dated 2-12-1988 [From F. No. 83/9/88-CX.3] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Chapter 27 - Non-levy of duty on Bituminous mixture falling under Sub-Heading No. 2715.90 of the CET - Regarding. A case has been brought to the notice of the Government where a manufacturer of industrial fabrics produced bituminous mixture consisting of bitumen and limestone powder/french chalk, was allowed to clear the product captively without payment duty for coating hessian fabrics, even though there was no exemption for captive use of such bitumen mixture. The ground for allowing such duty free clearance was that, the 'bituminous mixture' was not marketable. 2. The CERA objected to the above practice on the ground that, the mixture of bitumen and french chalk/lime powder is a "Bituminous mixture" covered by Heading 27.15, as the said heading includes 'Bituminous mixtures based on petroleum bitumen.' 3. The product was chemically tested by the Chemical Examiner, who also pointed that, as per the description in H.S.N., the product is classifiable under sub-heading 2715.90. It is mentioned in H.S.N. Explanatory Notes on p-223 that 'bituminous mixtures incorporating mineral substances' is covered under Heading 27.15. It is also noticed that the assessee himself is manufacturing and clearing a similar product viz. 'Bitumen Mastic' consisting of bitumen, silica and lime stone powder on payment of duty. In the circumstances, the objection has been admitted. 4. The above case is brought to your notice so as to enable you to take necessary corrective action for recovery of duty wherever necessary.