2004 (9) TMI 420 - AT - Central Excise

Summary

Issues:
Classification of products under Central Excise Tariff Act, 1985 - Chapter sub-heading 3003.10 or 3306.90.

Analysis:
1. The main issue in this case was the classification of three products manufactured by the appellants under the Central Excise Tariff Act, 1985. The department issued show cause notices proposing to classify the goods under chapter sub-heading 3306.00, while the appellants had classified them under 3003.10. The adjudicating authority initially accepted the appellants' classification, but the Commissioner (Appeals) ruled in favor of the Revenue.

2. The Commissioner (Appeals) based their decision on several grounds. They argued that the products should be classified under 3306.90 as preparations for oral and dental hygiene. This decision was supported by the chapter note of Chapter 30, chemical analysis results, specific entry under CSH 3306.90 in the Central Excise Tariff, and various affidavits indicating the products' use for oral hygiene. The Commissioner also referenced a Supreme Court case emphasizing the popular meaning of terms over scientific definitions.

3. In response, the appellants presented various submissions during the appeal. They argued that the products were primarily medicaments, not cosmetics or toiletries. They cited previous tribunal decisions and the licensing under the Food and Drugs Administration, Maharashtra, to support their classification under Chapter 30.

4. Upon reviewing the contentions, the tribunal found that the products in question were primarily medicaments based on their composition and intended use for treatment and prevention of gingivitis and ulcers. They highlighted Chapter Note 2 of Chapter 33, which specifies that products primarily intended for cosmetic or toiletry use fall under that chapter. Since the appellants' products were classified as medicaments and required professional medical practitioner recommendations for purchase, the tribunal concluded that the products were rightly classified under Heading 3003.10, overturning the Commissioner (Appeals) decision.

5. The tribunal's decision emphasized the nature of the products as medicaments and their licensing under regulatory authorities, supporting their classification under Chapter 30. The ruling highlighted the distinction between cosmetic/toiletry products and medicaments, ultimately allowing the appeal in favor of the appellants.