Gadaku-Lump (Laddu) and Gadaku (Granules) - Classifiable as Hookah tobacco - Central Excise - 81/18/86-CX.3

Gadaku-Lump (Laddu) and Gadaku (Granules) - Classifiable as Hookah tobacco Letter No. 81/18/86-CX.3 Dated 19-5-1986 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Gadaku-Lump (Laddu) and Gadaku (Granules - Chapter 24 - Clarification regarding A doubt has been raised as to whether Gadaku in Laddu lump form and in the form of granules falling under Chapter 24 of the new Central Excise Tariff is classifiable as Gadaku Hookah Tobacco. 2. The matter has been examined by the Board. Board is of the view that Gadaku in the form of lump (laddu) and also in the form of granules which is smoked in 'Chungi' or 'hukale' have very little difference - granules take less molasses as compared to Gadaku in laddu form, and these are also dried in the sun to make them in the form of granules. Both hookah and 'chungi' or 'hukale' are made from earth, and the 'Chilm' of hookah is akin to 'chungi' or 'hukale'. As such, there is sufficient justification to treat Gadaku in Laddu lump form which is smoked in Hookah and Gadaku in the form of granules (being essentially the same product by composition) as being classifiable as hookah tobacco under Heading No. 2404. 21 or 2404. 29, as the case may be.