Cir. No.281/115/1996-CX, dt. 26/12/1996
- Document type
- Circular
- Reference no.
- C
- Dated
Cardenol is eligible for exemption from duty under
2. During the cashew processing operations, the industry recovers Cashewnut Shell Liquid (CNSL) containing parts of cashew shells and certain other contaminants/organic impurities. Some units take the cashewnut shell liquid and purify it by distillation. The purified CNSL is commercially known as "Cardenol".
3. The matter has been examined. The Board has taken note of the following facts:
(ii) On a reference from the office of DG(AE), Cochin Regional Unit, the Cashew Export Promotion Council of India vide their letter dated 20.12.1995 clarified that cardenol manufacturers are also enrolled as members of the Council and registered as Registered Exporters as cardenol is a product of Cashew Industry.
(iii) The Indian Institute of Chemical Technology, Hyderabad on the basis of chemical tests of samples of CNSL and Cardenol has opined that IR spectra of both the samples are super imposable which means there is no difference in the structure between the two.
(iv) The Chemical Examiner, Customs Laboratory, Madras has expressed the view that cardenol cannot be considered as vegetable fat polymerised by heat in vacuum or otherwise chemically modified.
(v) The Chief Chemist, CRCL, New Delhi has expressed the view that in view of the composition and derivation of Cardenol, there are grounds to consider this product manufactured in factories covered by Cashew Industry.
5. Therefore, it is clarified that Cardenol is a product of "Cashew Industry" and accordingly exempt from Central Excise duty in terms of notification No. 115/75-CH dated 30.4.75.
6. All pending disputes/assessments on the issue may be settled in the light of these guidelines.
Sd/-
(P.K.Sinha)
Under Secretary to the Government of India