Classification – UPSS-classifiable under heading 8543.89 of CTA, 1975 & 8543.00 of CETA, 1985 - Customs - 022/2000

Circular No. 22/2000-Cus F.NO. 528/1/96/Cus(T.U.) Government of India Ministry of Finance Department of Revenue Central Board of Excise Customs New Delhi, the dt. 22 nd March, 2000 Subject: Classification – UPSS-classifiable under heading 8543.89 of CTA, 1975 8543.00 of CETA, 1985 It is directed to refer to Board’s circulars No. 25/96-Cus. Dated 24.4.96 and 151/2/98-CX. 4 dated 26.8.98, on the subject mentioned above. Vide Circular No. 25/96-Cus. dated 24.4.96, it was clarified that UPSS would be classifiable under sub-heading 8543.89 of the Customs Tariff and under sub-heading 8543.00 of the Central Excise Tariff, as per the decision of CEGAT in the case of J. K. Synthetics Ltd. [1995 (80) ELT 208 ET]. The CEGAT, in the case of Mangalore Chemical and Fertilisers Ltd., [1997 (93) ELT 548], decided that UPSS would be classifiable under heading 85.04 of the Customs Tariff. However, in view of the earlier conflicting judgement in the case of J. K. Synthetics, the issue was referred to the larger bench of CEGAT. Subsequently, vide Board’s letter No. 151/2/98-CX. 4 dated 26.8.98, following the order of Hon’ble Delhi High Court, it was clarified that UPSS, shall be cleared underheading 85.04, taking a Bond and Bank Guarantee for differential duty, pending decision of the appeal filed in Hon’ble SC in the case of J. K. Synthetics case or decision by a larger bench of CEGAT. It has now been brought to the notice of the Board that, in the case of Tata Libert Ltd. Vs. Commissioner of Central Excise, Mumbai [1999 (35) RLT933], the larger bench of CEGAT, vide order dated 07.12.99, has held that the UPSS will fall under heading 85.43, as decided earlier in the case of J. K. Synthetics. Hence, in supersession of the earlier circulars, it is hereby clarified that the UPSS will merit classification under sub-heading 8543.89 of the Customs Tariff and heading 8543.00 of the Central Excise Tariff. All pending asessments may be finalised and Bank Guarantees taken may be enforced to recover differential duty. Any difficulty encountered may be brought to the notice of the Board immediately.