Potato Chips as Namkeen

[Samik Chaudhuri]

Sir

Our company is manufacturing Potato Chips namely Potato Crackers. Now i would like to know whether potato chips could be declared as Namkeen to get benefit from Excise. Please advise me.

With thanks

Samik Chaudhuri.

[KASTURI SETHI]

Sh.Samik Chaudhuri Ji,

Answer is 'YES'. Pl. go through Board,s Circular and CESTAT judgement appended below:-

Ready to eat packaged food items like namkeen, bhujia - Exemption

Circular No. 841/18/2006-CX, dated 6-12-2006

 

2016 (331) E.L.T. 119 (Tri. - Del.) =  (331) E.L.T. 119 PEPSICO INDIA HOLDING PVT. LTD. Versus COMMR. OF C. EX., CHANDIGARH-II

 

[Ganeshan Kalyani]

Sir, satisfactory reply by Sri Kasturi Sir. Thanks.

AI Summary

Classification as namkeen permits excise exemption for ready-to-eat potato chips under circular and tribunal guidance.
Packaged potato chips described as potato crackers may be treated as namkeen for excise benefit; this advice relies on Board Circular No. 841/18/2006-CX and tribunal authority concerning classification of ready-to-eat packaged snack foods, and manufacturers should follow those instruments to satisfy entitlement conditions.