Circular No. 443/9/99-CX
dated 11/3/1999

F.No. 262/4/97-CX.0

Government of India
Ministry of Finance
(Department of Revenue), New Delhi

Subject : Central Excise - Levy and collection of Cess on 'Instant Tea' - Regarding -

    It has been brought to the notice of the Board that cess is not being collected on 'Instant Tea' under the provisions of the Tea Act, 1953 resulting into various Audit Objections.

2. The matter has been examined in the Board. Section 3(n) of the Tea Act, 1953 specifically lays down that tea covers all varieties of the product commercially known as tea. 'Instant Tea' is an extract from green tea leaves or black tea in the form of a fine powder with a low moisture content and is free flowing. As 'Instant Tea' is also commercially known as tea, it shall fall within the definition of Tea under Section 3(n) of Tea Act, 1953. Accordingly, it shall be liable to cess in terms of Section  25 of the Tea Act, 1953.

3. All pending disputes may be decided in light of the above clarification.

Sd/-
(S. K. Sinha)
Under Secretary to the Govt. of India