Central Excise - Heading No. 27.13 of CET - Levy of excise duty on Air Blown Grades Bitumen produced from duty paid Straight Grade Bitumen - Clarification regarding - Central Excise - 88/1/87-CX.3

Central Excise - Heading No. 27.13 of CET - Levy of excise duty on Air Blown Grades Bitumen produced from duty paid Straight Grade Bitumen - Clarification regarding F. No. 88/1/87-CX.3 Dated 16-6-1987 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Heading No. 27.13 of CET - Levy of excise duty on Air Blown Grades Bitumen produced from duty paid Straight Grade Bitumen - Clarification regarding. A doubt has been raised on the dutiability of air blown grade Bitumen obtained from duty paid Straight Grade Bitumen under the new Central Excise Tariff Act, 1985. 2. The matter has been examined by the Board.- It is observed that Petroleum Bitumen-packed in drums is classifiable under sub-heading No. 2713.21 whereas petroleum bitumen-in bulk is classifiable under sub-heading No. 2713.22 of the Schedule to the Central Excise Tariff Act, 1985. It means that, depending upon whether it is packed in drums or in bulk, Petroleum Bitumens whether of Straight grade or of Air blown grade are classifiable under the above mentioned sub-headings. This view also finds support from the HSN Explanatory Notes (B) below Heading No. 27.13 wherein it has been clarified that petroleum bitumen which has been slightly modified by air-blowing is similar to un-blown bitumen and remains in this heading. It has also been noted that earlier, vide T.A. No. 41/82 dated 16-7-1982 it was clarified that straight grade bitumen is a 'petroleum bitumen' and blown grade bitumen made out of straight grade bitumen is also a 'petroleum bitumen'. It was also clarified that both straight grade and blown grade bitumen would be classifiable under erstwhile T.I. No. 11 of the old Central Excise Tariff Act, but no duty would be chargeable on blown grade bitumen made out of duty paid straight grade bitumen. 3. In view of the above, it is clarified that both straight grade bitumen of petroleum and blown grade bitumen of petroleum would be classifiable either under sub-heading No. 2713.21 or 2713.22 of the Schedule to the Central Excise Tariff Act, 1985, depending on whether those are packed in drums or in bulk and no duty would be chargeable on blown grade bitumen of petroleum if made out of duty paid straight grade bitumen of petroleum.