Circular No.727/43/2003-CX.
29^th July, 2003.

F.No.109/1/98-CX.3
Government of India
Ministry of Finance & Company Affairs
Department of Revenue
Central Board of Excise & Customs

Subject : Classification/Excisability of Technical grade pesticides, etc – regarding.

            I am directed to invite your attention to Board’s Circular No.348/64/97-CX dated 28^th October, 1997.  In this Circular, Board has clarified that technical grades of pesticides, insecticides, etc. in bulk form will fall outside the scope of chapter 38.08 and will be assessed on merits under Chapter 28 & 29 which are relevant chapters for chemicals in general or under heading 38.23, depending on whether these are separately chemically defined compounds or not. 

2.         This circular was challenged by assesses before the Delhi High Court and Delhi High Court in its judgment dated 30^th November, 1998, had quashed this Circular.  Against the judgment of Delhi High Court, Board has filed Civil Appeal 3876 of 1999 in the Supreme Court.  The Supreme Court vide its judgment dated 23.10.2002, has dismissed the Department’s Civil Appeal and classified the technical grade pesticides, insecticides, etc in bulk form under chapter heading 38.08.  This judgment of the Supreme Court has been accepted by the Board. 

3.         In view of the above, the pending cases may be finalized accordingly. 

4.         Trade and field formations may be suitably informed. 

5.         Hindi version will follow.

Suraksha Katiyar
Under Secretary(CX.3)