Jute Caddies Classified Under Heading 53.04: Exempt for Captive Use, Taxable Otherwise per Central Excise Tariff Act 1985.

The circular addresses the classification and excisability of "Jute Caddies" under the Central Excise Tariff Act, 1985. Jute caddies, short jute fibers collected as waste during manufacturing in jute mills, were previously not liable to duty. However, under the new tariff, they are classified under Heading No. 53.04 as "other vegetable textile fibres." They are exempt from duty if used for captive consumption but are taxable if cleared otherwise. The Board concurs with the Best Zone Tariff Conference, confirming this classification and exemption status, and instructs relevant parties to be informed accordingly.

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