Classification of soapstone as talc for the purpose of claiming exemption under Notification No. 23/55-C.E., dated 29-4-1955, as amended - Central Excise - 118/14/87-CX.3

Classification of soapstone as talc for the purpose of claiming exemption under Notification No. 23/55-C.E., dated 29-4-1955 , as amended F. No. 118/14/87-CX.3 Dated 28-6-1987 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Classification of soapstone as talc for the purpose of claiming exemption under Notification No. 23/55-C.E., dated 29-4-1955 , as amended. A doubt has been raised as to whether soapstone can be treated on par with talc for the purpose of exemption, as contained in notification No. 23/55-C.E., dated 29-4-1955, as amended, which exempts, inter alia, talc fully from excise duty if such talc is employed as filler, extender, diluent or suspending agent. 2. The above issue came up for discussion in the North Zone Tariff-cum-General Conference of Collector of Central Excise held at New Delhi on 27th and 28th May, 1987. The Conference observed that the exemption notification in question specifically mentions talc only and not soapstone. The Conference also noted that it has been held in a recent CEGAT decision given in the context of the old Central Excise Tariff in the case of CCE, Jaipur v. Oriental Products (P) Limited that talc and soapstone are identical goods and that the exemption contained in Notification No. 23/55-C.E., dated 29-4-1955, as amended, is available also to soapstone if all the conditions of the said notification are satisfied. The Government have accepted the above decision of the CEGAT and have decided not to go in appeal against the said Order. 3. The Deputy Chief Chemist who was present at the Conference expressed the view that, in terms of chemical composition, there is little to distinguish soapstone from talc. The Conference, however, noted that the Board had earlier examined the issue and clarified, on the basis of HSN explanatory notes, vide their Telex F. No. 118/11/86-CX.3, dated 30-9-1986 that talc is different from soapstone as soapstone is more massive and compact than talc and also because talc is foilated and has soapier and softer touch. The Conference was of the view that the above mentioned telex instruction dated 30-9-1986 was correct and should be adhered to. The Conference came around to the view that in case the Government decision was in favour of allowing the exemption under the above notification to soapstone as well, more appropriate action would be to amend the relevant notification so as to cover not only talc but soapstone as well. The Conference also took the view that the particular CEGAT Order holding soapstone and talc as identical in the context of the old CET should not be interpreted as binding for all other cases particularly in view of the fact that the relevant HSN Explanatory Notes does distinguish soapstone from talc. 4. The above position may be brought to the notice of the lower field formations and the trade interest may also be suitably informed. 5. All pending assessments may be finalised on the basis of the guidelines given above.