Circular No. 7/90-CX.1 Dated 7-3-1990

Classification of Glucose ‘D’ manufactured out of Duty paid Dextrose Monohydrate - CET heading 1702.21 - Regarding.- A doubt has been raised regarding the classification of Glucose ‘D’ manufactured out of duty paid Dextrose Monohydrate. An assessee is receiving Dextrose, monohydrate under heading No.l702.19 on payment of duty in bulk. The same is then subjected to the process of mixing with 0.6% of Calcium Phosphate and Vitamin-D in blending machine. Thereafter it is re-packed in Polyethylene Pouches ranging from 100 gms. to 500gms.and packed in the printed carton packets bearing the printed label of the assessee and registered Trade mark and instructions for use.

2. A doubt was expressed whether the processes as above to which Dextrose Monohydrate is subjected, could be considered as a manufacturing activity. It is reported that Dextrose Monohydrate is subject to process of mixing additional ingredients such as calcium phosphate 0.6% and Vitamin-D and blending them to make the product homogenous. It is cleared from the assessees premises on the label marked as Glucose-D that it is enriched due to the above additions. It is admitted that this is being sold in unit containers ranging from 100 gms. to 500 gms. Since the product is prepared by addition of the materials as above to dextrose monohydrate to obtain Glucose’D’, it is not the same product as dextrose monohydrate. The field formations are of the view that Glucose’D’ is classifiable under 1702.19 and chargeable to duty accordingly.

3. The issue was discussed in the West Zone Tariff Conference held at Nagpur on 16th and 17th November, 1989. The Conference noted that the Classification of Glucose ‘D’ would not remain under Sub-heading 1702.19 but attract classification as ‘Preparations of other sugars’ under 1702.21 or l702.29 or under Heading 2107. However, it was decided that before taking a final view the Chief Chemist may be consulted in the matter. The Chief Chemist has viewed that the blending of Dextrose monohydrate with calcium phosphate and Vitamin D is done with some specific purpose, that is, to enrich the product with calcium and Vitamin D. The enriched product is not merely Dextrose monohydrate, but a product of different character and identity. This is why there are specific instructions on the container for its use. Dextrose monohydrate finds use in confectionery, infant foods, medicine, brewing and wine-making, intermediate Caramel colouring, baking and canning, and as a source of methane and anaerobic fermentation, whereas, Glucose ‘D’ which is sold under a brand name, is different from commonly marketed Dextrose monohydrate. It is a preparation based on Dextrose monohydrate. In the opinion of the Chief Chemist its classification under Central Excise Tariff heading No. 1702.21 as preparations of other sugars, would be most appropriate. When Calcium Phosphate and Vitamin ‘D’ are added to Dextrose Monohydrate, a new product different from commonly known dextrose emerges. Therefore, addition of Calcium Phosphate & Vitamin ‘D’ to Dextrose Monohydrate and labelling it under new packets, cannot be considered as simply repacking of Dextrose Monohydrate.

4. The matter was further examined in the Board and it has been decided to accept the views of the Chief Chemist that Glucose ‘D’ is classifiable under Sub-heading 1702.21 of the Central Excise Tariff.

5. The field formations and trade interest may be informed suitably.

[F. No. 14/8/89-CX.1]