Central Excise - Classification of Charred Molasses resulting from autocombustion in the molasses storage tank - Regarding - Central Excise - 9/90

Central Excise - Classification of Charred Molasses resulting from autocombustion in the molasses storage tank - Regarding Circular No. 9/90 Dated 19-3-1990 [From F. No. 14/9/88-CX.1] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Classification of Charred Molasses resulting from autocombustion in the molasses storage tank - Regarding A doubt has been raised regarding the correct classification of Charred Molasses resulting from auto-combustion in the molasses storage tanks in the sugar factories. It is reported that the material under dispute was in the form of dark brown/black cloured solid mass mainly composed of carbonaceous matter together with small amount of sugar, having reduced sugar contents of 20.5% or less. 2. In this regard the views of the Chief Chemist C.R.C.L. were sought. He has observed that Charred molasses resulting from auto-combustion of molasses, is not a waste product directly obtained in sugar manufacture. The material may be considered either akin to molasses or more appropriately a waste of molasses which in turn is a product of sugar manufacture. It is, therefore, broadly covered within the scope of heading 23.01,' other waste of sugar manufacture. However, the product may always be a mixture of burnt and partially burnt molasses. Its consideration under another contending heading 38.23 of CET as residual product of chemical and allied industries (including those consisting of mixture of natural products) cannot be ruled out. In this context, it is pertinent to point out that, occurrence of such produces i.e. auto-combusted charred molasses, is a rare phenomenon in sugar industry. It is also seen from the literature available that combustion of molasses inside the tank, causing huge explosion and damage to be a commodity produced in sugar industry as a regular feature. Since molasses find use for manufacture of alcohol for potable purposes also, the matter needs through investigation before issuing any general guidelines for classification of charred molasses. It would be better if each case is examined and decided on its own merits. 3. The matter has been further examined in the Board and it is felt that the classification of charred molasses appears to be under heading 17.03 as molasses or 23.01 as other waste of sugar manufacture or 38.23 as residual product of chemical and other industries, depending on the extent of damage or burning during auto-combustion, as opined by the Deputy Chief Chemist. The exact classification can be ascertained by drawing samples and from chemical analysis. If charred molasses is not marketable, it can further be destroyed and duty remitted under Rule 49. 4. Field formation and trade interests may be informed suitably.