Bauxite, gypsum etc. Crushed separately and then mixed to produce 'raw feed' slurry - Exemption under Notification No. 447/86-C.E. - Central Excise - 49/89

Bauxite, gypsum etc. Crushed separately and then mixed to produce 'raw feed' slurry - Exemption under Notification No. 447/86-C.E. Circular No. 49/89 Dated 7-8-1989 [From F.No. 115/6/89-CX.3] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Central Excise - Excise duty liability on bauxite, gypsum etc. crushed separately and then mixed to produce 'raw feed'/'slurry' - Availability of exemption contained in Notification No. 447/86-C.E., dated 13-11-1986, as amended - Clarification regarding. Attention is invited to Notification No. 447/86-C.E., dated 14-11-1986, as amended. It has been represented to the Board that excise duty is being charged on bauxite, gypsum and other minerals crushed separately and then mixed to produce 'raw feed'/'slurry'. 2. The matter has been examined. It is found that 'raw feed'/'slurry' is a mixture of crushed minerals like crushed bauxite, crushed gypsum etc. When such minerals are crushed together and mixed to produce 'raw feed'/ 'slurry' which are used in the manufacture of cement clinkers within the factory of production of such 'raw feed'/'slurry', then the benefits of the exemption contained in Notification No. 447/86-C.E., dated 13-11-1986, as amended, are available to such crushed minerals. There may be cases where the said minerals, instead of being crushed separately and then mixed to produce 'raw feed'/'slurry'. The fact remains that the said minerals, regardless of whether those are crushed separately or crushed together, are actually mixed to produce 'raw feed'/'slurry'. It is felt that it would not be fair and just to charge duty on bauxite, gypsum etc. when those are crushed separately but ultimately mixed to produce 'raw feed'/'slurry' which itself is exempt if captively consumed in the manufacture of cement clinkers in terms of Notification No. 447/86-C.E., dated 13-11-1986, as amended. 3. The above guidelines may be brought to the notice of the lower field formations and the trade interests may also be suitably informed. 4. All pending assessments may be finalised on the above basis.