TaxTMI 
TaxTMI 
Central Excise - Classification of binding agents and wetting agents used in the textile industry - Clarification regarding
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.... Finance (Department of Revenue) Central Board of Excise & Customs, New Delhi Subject : Central Excise - Classification of binding agents and wetting agents used in the textile industry - Clarification regarding. A doubt had been raised about the correct classification of binding agents and wetting agents used in the textile industry. 2. The matter also came up for discussion at the South Zone....
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.... the rove gets wetted. The wetted rove is twisted and heat-set. The wetness prevents formation of hairy fibres on the surface of the yarn. Thus the product is used during the manufacture of the yarn and not in the finishing of the yarn after its manufacture. The manufacturers are claiming the classification of wetting agents under heading No. 38.09 as finishing agents. The Collector reported that ....
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....of the reasons given above and that it cannot be classified as a finishing agent. This is supported by the HSN Explanatory Notes on page 485 under Heading No. 34.02, according to which surface active preparations are used for their wetting properties, among others, in many industrial applications such as wetting agents and emulsifying agents by the textile industry. The Conference decided that the....