2004 (8) TMI 449 - AT - Central Excise

Summary

Issues:
Classification of 'Clinic Plus Coconut Hair Oil' and 'Clinic All Clear Dandruff Hair Oil' under Central Excise Tariff Act, 1985 Schedule heading 33.0570 versus 330599.

Analysis:
The judgment by the Appellate Tribunal CESTAT, Mumbai, involved the classification issue of 'Clinic Plus Coconut Hair Oil' and 'Clinic All Clear Dandruff Hair Oil' under the Central Excise Tariff Act, 1985. The appellant sought classification under heading 33.0570, while the Revenue classified it under 330599. The Tribunal referred to a previous decision in the case of Amit Ayurvedic & Cosmetic Products (I) Pvt. Ltd. v. CCE, Surat-II, where classification under Heading 3305.10 was upheld due to the identical constituents and usage of the products. The entities contained Coconut Hair, Petroleum Paraffin, Perfume, and Dandruff eradicating Chemicals, leading to the classification under 3305.10.

The Tribunal dismissed attempts by the learned DR to differentiate the products based on additional ingredients, emphasizing that the core constituents defined the classification. The argument that a consumer seeking Perfumed Hair Oil would not choose a Dandruff removal product was rejected, citing the common understanding principle established in the case of Naturalle Health Products (P) Ltd. The Tribunal also disregarded references to FDA registrations and package labeling as 'Anti Dandruff Agent,' maintaining that the primary classification as Perfumed Hair Oil stood firm. The judgment highlighted the secondary function of Dandruff cure and the importance of chapter notes in determining classification under the 1985 tariff.

Ultimately, the Tribunal aligned with the classification established in the Amit Ayurvedic & Cosmetic Products (I) Ltd. case, confirming the classification under 3305.10. The orders were set aside, and the appeals were allowed, focusing solely on the classification issue without delving into other goods involved. The judgment emphasized the significance of core constituents, common understanding, and chapter notes in determining the appropriate classification under the Central Excise Tariff Act, 1985.