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2011 (10) TMI 93 - AT - Central ExciseManufacture - Whether user of term on the product Pure Water is branding of goods - Re-pacing of Pure Water - from bulk pack/ in tanker load to 5 litres Jars and carboys - Held that - Pure Water , by any stretch of imagination can not be considered a brand name. There is no evidence on record brought by the Revenue as to hold that word Pure Water was registered as brand name. - classification of the product sought by the appellant under Chapter heading No. 2201.11, is correct and the classification done by the Revenue authorities under Chapter heading No. 2201.19 is, incorrect. Classification of the product WIDAL-SALMONELLA ANIGENS SET - Held that - the classification of product WIDAL-SALMONELLA ANIGENS KIT would be correct by classified under Chapter heading 30.02, as claimed by the assessee. - Decided in favour of assessee.
Issues Involved:
1. Classification of 'Pure Water'. 2. Classification of 'WIDAL-SALMONELLA ANIGENS KIT'. Issue-wise Detailed Analysis: 1. Classification of 'Pure Water': The primary issue revolves around whether the repacking of 'Pure Water' into smaller containers and labeling it as 'Pure Water' constitutes manufacturing and if it falls under a specific brand name as per Chapter 3 of Chapter 22 of the Central Excise Tariff Act (CETA). The adjudicating authority and the first appellate authority upheld that this repacking and labeling process amounted to manufacturing, classifying it under sub-heading 2201.19, attracting a duty rate of 16%. The appellant argued that 'Pure Water' is not a brand name and cited various case laws, including Tata Tea Limited, to support their claim that the product should be classified under sub-heading 2201.11, which attracts a nil rate of duty. Upon careful consideration, it was found that the term 'Pure Water' does not constitute a brand name. The product, whether in bulk or repacked, remains 'Pure Water' and should not be considered a branded product. The judgment of the Supreme Court in Tata Tea Limited was pivotal, where it was held that terms like 'Instant Tea' are not brand names but product names. Similarly, 'Pure Water' is a product name and not a brand name. Consequently, the classification under sub-heading 2201.19 by the Revenue authorities was deemed incorrect, and the product was correctly classified under sub-heading 2201.11. 2. Classification of 'WIDAL-SALMONELLA ANIGENS KIT': The second issue pertains to the classification of 'WIDAL-SALMONELLA ANIGENS KIT'. The adjudicating authority classified it under sub-heading 3822.00, while the appellant contended it should fall under sub-heading 3002.00. The Commissioner (Appeals) supported the adjudicating authority, stating that the product is a diagnostic reagent kit and not a pharmaceutical product, thus falling under Chapter 38. The appellant argued that the product should be classified under Chapter 30, as it involves antigens used for diagnostic purposes, and the bulk supplier classified it under sub-heading 3002.00. The HSN Notes under Chapter 30 and Chapter 38 were examined, which indicated that diagnostic kits falling under agglutination tests should be classified under Chapter 30. The Supreme Court's decision in Span Diagnostics was crucial, where it was held that antisera and other blood fractions, including diagnostic reagents, fall under Chapter heading 30.02 and are excluded from Chapter heading 38.22. Based on these findings, it was concluded that 'WIDAL-SALMONELLA ANIGENS KIT' should be classified under sub-heading 3002.00, as claimed by the appellant. Conclusion: The appeals were allowed, setting aside the impugned orders. The classification of 'Pure Water' was confirmed under sub-heading 2201.11, and 'WIDAL-SALMONELLA ANIGENS KIT' under sub-heading 3002.00, providing consequential relief to the appellant.
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