Subject: Classification/ Exciseability of Pesticides for the purpose of levy of excise duty -reg.
Government of India, Ministry of Finance, Department of Revenue, Central Board of Excise and Customs, New Delhi, Circular No.611/2/2002-CX, vide F.No.126/1/2000-CX.3 dated 14.01.2002, is reproduced below for the guidance of the Importers/Clearing Agents and Trading Public.
C11/10/2002-AP (PORT) (JOSEPH DOMINIC)
CUSTOM HOUSE, CHENNAI-1 COMMISSIONER OF CUSTOMS (PORT)
Please refer to Board’s 37B order 40/2/95-CX dated 27.7.1995 which clarifies that the addition chemicals and other ingredients like inert carriers or solvents and also surface active dispersing and stabilizing agents to pesticidal chemicals in highly concentrated form would amount to ‘manufacture’ within the meaning of Section 2 (f) of the CETA 1985, since it results in the emergence of a new and distinct product having different properties viz. pesticide/insecticide fit for direct use. The Pesticide Chemicals and the formulation will both be classified under heading 38.08 of CETA 1985.
2. After the 1996 and 1997 Budgets, pesticides in bulk form will not fall under heading No.38.08. These will fall either under chapters applicable to chemicals in general or under heading No.38.23, depending on whether these are separately defined elements or compounds or not. As per chapter note 2 to chapter 38,introduced in the Budget 1996-97, the process of addition of chemicals and other ingredients to pesticidal chemicals in concentrated from will amount to “manufacture”.
3. In view of the above, the instructions contained in 37B order dated 27.7.1995 would no longer be valid in their entirety. These instructions may, therefore, be treated as withdrawn
DY. COMMR. OF CUSTOMS (APPG)