2003 (7) TMI 428 - AT - Central Excise

Summary

Issues: Classification of soap noodles under sub-heading No. 3401.19 or 3401.11 of the Schedule to the Central Excise Tariff Act.

Analysis:
1. Classification Dispute: The primary issue in this appeal was the classification of soap noodles manufactured by M/s. V.V.F. Ltd. The Revenue contended that the soap noodles should be classified under sub-heading 3401.19, while the Commissioner confirmed their classification under sub-heading 3401.11.

2. Revenue's Argument: The Revenue argued that soap noodles, whether cleared for home consumption or captive use, should be classified under sub-heading 3401.19 as soap. They emphasized that the end-use should not alter the classification of soap noodles, considering them distinct from soap and to be classified under the Residuary sub-heading 'Others'.

3. Respondent's Argument: On the other hand, the Respondent argued that sub-heading 3401.11 applied to soap not for toilet use, which aligned with the intended chemical industry use of the soap noodles. They relied on the description of the sub-heading, indicating that soap classification should be based on end-use rather than composition. Citing precedent, they contended that soap noodles were eligible for certain benefits as they were considered soap.

4. Judgment Analysis: The Tribunal examined the Tariff Heading, specifically sub-headings 3401.11 and 3401.19. It noted that the soap noodles cleared for home consumption were for chemical use, not for toilet use, a point uncontested by the Revenue. No evidence was presented to suggest the soap noodles were intended for toilet use, justifying their classification under sub-heading 3401.11. Referring to a previous case, the Tribunal highlighted that soap noodles required further processing to become toilet soap, supporting their classification under sub-heading 3401.11. The Commissioner's decision, backed by relevant dictionaries and case law, was upheld, leading to the rejection of the Revenue's appeal.

This detailed analysis showcases the classification dispute over soap noodles and the Tribunal's reasoning in affirming their classification under sub-heading 3401.11 based on the intended use and processing requirements for toilet soap.