Central Excise - Classification and duty liability of spent caustic soda lye - Central Excise - 16/88-CX.3

Central Excise - Classification and duty liability of spent caustic soda lye Circular No. 16/88-CX.3 Dated 8-9-1988 [From F. No. 119/5/88-CX.3] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Classification and duty liability of spent caustic soda lye. Certain doubts had been raised regarding the classification and duty liability of spent caustic soda lye arising out of duty-paid caustic soda during the processing of textiles. 2. The matter came up for discussion at the West Zone Tariff-cum- General Conference of Collectors of Central Excises held at Bombay on 28-7-1988. The Collector of Central Excise, Ahmedabad explained that the textile mills are using duty-paid caustic soda lye for processing cotton fabrics. After processing, caustic soda so used gets reduced in strength and contains some impurities. This is called 'Spent Caustic Soda Lye' or wash caustic liquor. 3. The Conference considered the views of the Acting Chief Chemist, CRCL in this regard, and felt that as no new product emerged so there was no question of duty being charged again on spent caustic soda lye when duty has already been charged on the virgin caustic soda. 4. The Board agrees with the above views of the Conference. Accordingly, it is hereby clarified that spent caustic soda lye arising out of duty-paid caustic soda during the processing of textiles though would be appropriately classifiable as caustic soda only yet no further duty would be chargeable at the time of clearance of such spent caustic soda lye. 5. The trade interests may also be suitably advised. 6. All pending assessments may be finalised on the above basis.