Rate of duty on white clay

[MEHUL ASHAR]

Respected Sir,

As regarding above subject, my query is that one of my clients want 2 sale white clay as I have heard it is duty free product,Please let me know is it duty free or dutiable product on which duty has 2 be charged, If it is dutiable then what is cetsh no. & what rate of duty is on it.Please reply.

[KASTURI SETHI]

Sh.Mehul Ashar Ji,

White clay is also known as Chine clay ((Kaolin). It falls under Chapter/Heading/sub-heading no.2505 10 11 of Central Excise Tariff Act. It is exempted from Central Excise duty. Relevant case law is appended below:- ( It will be helpful to you.)

COMMISSIONER OF CUSTOMS & CENTRAL EXCISE Versus 20 MICRONS LTD. 2015 (324) E.L.T. 14 (S.C.)  - 2015 (9) TMI 880 - SUPREME COURT

[MEHUL ASHAR]

Respected Sir,

Thank U 4 UR reply. U removed my confusion.

AI Summary

Exemption from central excise: white clay treated as duty-exempt under applicable tariff heading, supported by precedent.
White clay (kaolin) is classified under the tariff entries for kaolin and is exempted from Central Excise duty, so no excise duty is payable on sales of white clay under that tariff classification.