Central Excise - Spent calcium - Sulphite solution - Applicability of Notification No. 378/86-C.E., dated 29-7-1986 (presently No. 31/89-C.E., dated 1-3-1989) - Regarding - Central Excise - 107/2/90-CX.3

Central Excise - Spent calcium - Sulphite solution - Applicability of Notification No. 378/86-C.E., dated 29-7-1986 (presently No. 31/89-C.E., dated 1-3-1989 ) - Regarding F. No. 107/2/90-CX.3 Dated 8-7-1992 Government of India Central Board of Excise Customs New Delhi Subject : Central Excise - Spent calcium - Sulphite solution - Applicability of Notification No. 378/86-C.E., dated 29-7-1986 (presently No. 31/89-C.E., dated 1-3-1989 ) - Regarding. Notification No. 378/86-C.E., dated 29-7-1986 (presently No. 31/89-C.E., dated 1-3-1989) fully exempts Black Liquor falling under Heading No. 28 or 38 of the Schedule to the Central Excise Tariff Act, 1985. Black liquor is nothing but spent liquor which is separated from the pulp after the cooking operation has been completed in the manufacture of wood pulp. There are three methods of making wood pulp, namely, soda process, sulphate process and sulphite process. In all these three processes the wood chips are cooked with chemicals depending upon the process employed for making pulp. In the soda and sulphate process the cooking medium is sodium hydroxide and sodium sulphate respectively. In the sulphite process, the cooking medium is calcium-bi-sulphite solution. However, the spent liquor arises in all the three processes. 2. Central Excise revenue audit has raised an objection that the spent liquor is known as "Black liquor" in soda and sulphate process of pulp making and not in sulphite process, as such the benefit of Notification No. 378/86-C.E., dated 29-7-1986 is not available to spent liquor, namely, spent clacium-bi-suiphite solution obtained in the sulphite process of pulp making. The sulphite process is used in the manufacture of rayon grade wood pulp. However, it appears that spent liquor obtained in all these processes is generally known as black liquor. 3. The matter has been examined in the Board and the file leading to the issue of Notification No. 378/86-C.E., dated 29-7-1986 has been seen. It has been observed that prior to the issue of Notification No. 378/86-C.E., dated 29-7-1986, "Black liquor" was, fully exempt under Notification No. 219/86-C.E., dated 2-4-1986. Under Notification No. 219/86-C.E., dated 2-4-1986, the exemption was, however, not applicable to black liquor arising in the manufacture of rayon grade wood pulp. Subsequently, at the request of the trade, the Government granted the full exemption to spent liquor (black liquor), arising in the manufacture of rayon grade wood pulp also which is nothing but spent calcium-bi-sulphite solution. Thus, the intentions behind issuing the Notification No. 378/86-C.E., dated 29-7-1986 was to provide exemption to spent liquor i.e., calcium-bi-sulphite solution arising in the manufacture of rayon grade wood pulp in sulphite process. 4. In view of the above, it is clarified that the benefit of full exemption under Notification No. 378/86-C.E., dated 29-7-1986 (presently) No. 31/89-C.E., dated 1-3-1989) will also be applicable to spent liquor i.e., spent calcium-bi-sulphite solution obtained in the manufacture of rayon grade pulp in the sulphite process. 5. All pending assessments may be finalised on the above basis. Lower field formations may be advised suitably. The trade may also be informed accordingly.