Central Excise - Short levy of duty due to incorrect classification of 'Micro crystalline cellulose powder's - regarding - Central Excise - 32/88

Central Excise - Short levy of duty due to incorrect classification of 'Micro crystalline cellulose powder's - regarding Circular No. 32/88 Dated 15-12-1988 [From F. No.93/51/88-CX.3] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Short levy of duty due to incorrect classification of 'Micro crystalline cellulose powder's - regarding. Prior to 28.2.1986, all polymerised products and Nitrates, acetates, esters, ether and other chemical derivative of cellulose whether plasticated or not, were classifiable under sub-item (i) of erstwhile tariff item 15A of the CET. An assessee manufacturing 'micro crystalline cellulose powder' from wood pulp (pure cellulose) was allowed to clear their product under erstwhile tariff item 68 without payment of duty with reference to Notfns. No. 77/83-CE and 77/85-CE. On being pointed out by the Audit that these products ought to have been classified under erstwhile T.I. 15A and not under T.I. 68, the product was sent for chemical examination. On chemical examination, it was found by the Chief Chemist that the product in questions, cellulose in the form of white fluffy powder and merits consideration as 'other high polymers'. 2. It has been noticed that divergent practice was being followed in classification of 'micro crystalline cellulose powder' in different collectorates during the period prior to 28-2-1986. The above case is brought to your notice. The product under question would attract duty under T.I. 15A and not under T.I. 68 of the erstwhile CET in the period prior to 28-2-1986. It is requested to take appropriate remedial action.