2005 (7) TMI 408 - AT - Central Excise

Summary

Issues:
Classification of Anti-Dandruff Hair Vitalizer and Revitalising Hair Nutrient under Central Excise Tariff headings 3305.10 and 3305.99 respectively.

Detailed Analysis:
The appeal concerns the classification of Anti-Dandruff Hair Vitalizer and Revitalising Hair Nutrient manufactured by the Respondents. The Revenue argues for classification under 3305.99 as "other preparations for use on the hair," while the Original and first Appellate authorities classified them under 3305.10 as "perfumed hair oil." The dispute revolves around whether the goods primarily function as anti-dandruff and hair growth products or as perfumed hair oil.

The grounds of appeal put forth by the Revenue highlight that the impugned goods contain ingredients like Tea-Tree Oil and Neem Oil for anti-dandruff properties and Bringaraja, Amalaki, Methi for hair growth promotion, emphasizing that the addition of perfume is minimal and not the primary function. The Revenue relies on legal precedents such as the Supreme Court's decision in M/s. BPL Pharmaceuticals Ltd. v. CCE, Vadodara to support their argument that even if perfumed, products with medicinal properties should not be classified as cosmetics.

In response, the Respondent argues that the impugned goods are primarily intended for preventing hair loss, promoting hair growth, and controlling dandruff. They cite legal cases like M/s. Vasu Pharmaceuticals v. CCE, Vadodara to support their stance that products marketed as herbal hair tonics can be classified as perfumed hair oils. The Respondent contends that the products' classification should be based on their specific identity rather than how they are marketed.

The Tribunal's analysis acknowledges that the impugned items are hair oil and agrees on the main classification under 3305. The crux of the dispute lies in the sub-heading classification. The Commissioner (Appeals) relied on Chapter Note 6 and Chapter Note 2 of Chapter 33, which state that perfumed hair oils, regardless of other properties, should be classified under Heading 33.05. Given the specific sub-heading 3305.10 covering perfumed hair oil, the Tribunal upholds the classification declared by the Respondent, supported by previous case laws. Consequently, the Tribunal dismisses the Revenue's appeal, affirming the correct classification under sub-heading 3305.10.

In conclusion, the judgment clarifies the classification of the Anti-Dandruff Hair Vitalizer and Revitalising Hair Nutrient under the Central Excise Tariff headings, emphasizing the importance of specific identity and primary function in determining the classification of products, particularly in cases involving perfumed hair oils with additional properties.