Central Excise - Classification of 'Gul' - Whether under sub-heading No. 2404.90 as a tobacco product or under Chapter 33 as Dentifrice - Doubts regarding - Central Excise - 81 /40/87-CX.3

Central Excise - Classification of 'Gul' - Whether under sub-heading No. 2404.90 as a tobacco product or under Chapter 33 as Dentifrice - Doubts regarding F. No. 81 /40/87-CX.3 Dated 24-6-1987 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Classification of 'Gul' - Whether under sub-heading No. 2404.90 as a tobacco product or under Chapter 33 as Dentifrice - Doubts regarding. A doubt has been raised as to whether 'Gul', a tobacco-based product containing tobacco dust, banana ash, lime, flavour etc. should be classified under sub-heading No. 2404.90 as a tobacco product or under Chapter 33 as a dentifrice. 2. The issue was discussed in the North Zone Tariff-cum-General Conference of Collectors of Central Excise held at New Delhi on 27th and 28th May, 1987. The CCE, Allahabad, who sponsored the point, stated that 'Gul' is a tobacco-based product containing tobacco dust, banana ash, lime, flavour etc. It was explained by him that the percentage of tobacco and other contents varies from one brand to another. It is primarily a tobacco product and can be used as tooth-powder only by those, who are habituated to consume other such products. In other words, a non-addict wishing to use a dentifrice would not use 'Gul' nor would he be able to tolerate it without discomfort. The other ingredients used in 'Gul' are mainly to reduce the bitter effect of tobacco used. The Conference noted that in the context of the old Central Excise Tariff, which existed prior to 28-2-1986, there was a Tariff Advice No. 49/81, dated 5-6-1981 wherein it was viewed that 'Gul' being neither chewing tobacco nor snuff would not fall under erstwhile TI 4.11 (5) or TI 4.11 (6) and was properly classifiable under TI 68. However, under the new CET, the position is somewhat different in-as-much as there is a residuary sub-heading No. 2404.90 to cover manufactured tobacco products which are not specifically covered by the other sub-heading of Chapter 24. Such residuary sub-heading did not exist under the erstwhile item No. 4 of the old CET. The Conference noted that the essential characteristic to the product is provided by its tobacco content giving an intoxicating effect on its use. The Conference also took into consideration the fact that the product is not known in the trade parlance as tooth paste or tooth-powder or as a dentifrice even though there is no denying the fact that 'Gul' is used as 'dentifrice' by certain sections of people, are addicted to tobacco. 3. Taking into consideration these factors, the Conference concluded that the product 'Gul' would merit classification under sub-heading No. 2404.90. 4. The board has accepted the above views of the Conference. Accordingly, it is clarified that the tobacco-based product, which is commonly known as 'Gul', would be appropriately classifiable under sub-heading No. 2404.90 and not under Chapter 33 as a 'dentifrice'. 5. The above position may be brought to the notice of lower field formations and the trade interest may also be suitably informed. 6. All pending assessments may be finalised on the basis of guidelines given above.