2008 (7) TMI 676 - AT - Central Excise

Summary

Issues:
Classification of goods under different headings based on their purpose and characteristics.

Analysis:
The appeal revolved around the classification of goods under specific headings concerning the purpose and characteristics of the product. The original authority classified the goods under Heading 3307.90, while the first Appellate order classified them under Heading 33.03, based on HSN classification. The appellant contended that the goods should be classified under Heading 33.03. The Revenue argued that the perfume, although falling under the main class of Heading 33, should be classified under Heading 33.07 due to its specific purpose for the human body. The Revenue sought interference in the first Appellate order, emphasizing the misclassification apparent in the decision.

The respondent, represented by counsel, argued that the product in question was simply a perfume, and the intended use by the buyer should not affect its classification. The learned Appellate authority provided reasoning for classifying the goods under Heading 33.03, asserting that the classification was appropriate. The respondent contended that the first Appellate order, being well-reasoned, did not warrant any interference.

Upon hearing both parties and examining the records, the Tribunal sought to address the Revenue's grievance by evaluating the basis of the assessment. It was noted that the show cause notice was based on a detailed study, but this study was not presented for appreciation by the authorities. The Tribunal concluded that without such material, the user criteria for classification were irrelevant, and the goods belonged to the class of S.H. 33.03 as determined by the learned Appellate authority. Additionally, the Tribunal highlighted the lack of cogent evidence to support an alternative classification, deeming it improper. Consequently, the Tribunal upheld the first Appellate order, ruling that the Revenue's appeal was unsuccessful.