2006 (7) TMI 429 - AT - Central Excise

Summary

Issues Involved:
Classification of 'Herbal Shikakai Powder' as a cosmetic under SH 3305.99 or under Chapter 14 of the CETA Schedule.

The judgment by the Appellate Tribunal CESTAT, CHENNAI dealt with the issue of the classification of 'Herbal Shikakai Powder' manufactured and supplied in bulk by the respondents to a company during a specific period. The question at hand was whether the product should be classified as a cosmetic under SH 3305.99 of the CETA Schedule, as contended by the department, or under Chapter 14 of the said Schedule, as claimed by the assessee. The Tribunal referred to a previous decision in a similar case and held that the product in question should be classified under Chapter 14 of the CETA Schedule, making it not excisable for the period in dispute. The Tribunal relied on the precedent set in the case of Henna Export Corporation v. CCE, New Delhi, where it was established that Herbal Shikakai Powder, when cleared in bulk, falls under Chapter 14. Consequently, the Tribunal dismissed the Revenue's appeal based on this classification, thus resolving the issue of classification in favor of the assessee.

In summary, the judgment clarified the classification of 'Herbal Shikakai Powder' as not excisable under Chapter 14 of the CETA Schedule, based on the precedent set in a previous case. The decision emphasized the importance of proper classification under the relevant Schedule, ultimately leading to the dismissal of the Revenue's appeal.