2012 (6) TMI 558 - AT - Central Excise

Classification of the respondent s product Ponds Oil Control Face Wash - Revenue appeal that the same should be classified as Skin Care preparation falling under Chapter Heading 3304.00 of the Central Excise Tariff Act rather than under the Heading 3402.90 as Organic Surface Active Agent (OSA) accepted by Commissioner (Appeals) Held that - Since the disputed issue stands decided in favour of the respondents by several decisions of the Tribunal in MUL DENTPRO PVT. LTD. Versus COMMISSIONER OF C. EX., VAPI 2007 (8) TMI 150 (Tri) , ALFA PACKAGING Versus COMMISSIONER OF C. EX., VAPI 2010 (10) TMI 400 (Tri) find no merits in the Revenue s appeal against revenue.

Summary

Issues:
Correct classification of the product "Ponds Oil Control Face Wash" under the Central Excise Tariff Act.

Analysis:
The dispute in the present appeal revolves around the classification of the product "Ponds Oil Control Face Wash." The Commissioner (Appeals) accepted the assessee's stand that the product should be classified under Heading 3402.90 as an Organic Surface Active Agent (OSA). On the contrary, the Revenue contends that the product should be classified as a Skin Care preparation falling under Chapter Heading 3304.00 of the Central Excise Tariff Act.

The Commissioner (Appeals) based their decision on the test reports from the Chemical Examiner, Customs House, Chennai, and The Central Revenue Control Laboratory, New Delhi. These reports indicated that "Ponds Oil Control Face Wash" met the conditions specified in Note 3 to Chapter 34 of the Central Excise Tariff Act. Consequently, the Commissioner upheld the order of the Assistant Commissioner of Central Excise and rejected the Revenue's appeal, leading to the current appeal by the Revenue.

The Revenue, in their appeal memorandum, referenced HSN Notes for the classification of the product under Chapter 3402.90, highlighting an exclusion clause that excludes certain preparations. However, the Tribunal had previously addressed this exclusion clause in a similar case involving the same appellant, where it was held that the product should be classified under Chapter Sub-heading 3402.90 as claimed by the assessee and not under 33.04 as claimed by the Revenue.

Furthermore, the Tribunal cited precedents in other cases, such as Mul Dentpro Pvt. Ltd. Vs. CCE, Vapi and Alfa Packaging Vs. CCE, Vapi, where similar products were classified under Chapter Heading 3402 instead of Chapter 3304. Considering these decisions and the consistent classification of similar products by the Tribunal, the appeal by the Revenue was deemed to lack merit, and it was consequently rejected.

In conclusion, the Tribunal upheld the classification of "Ponds Oil Control Face Wash" under Chapter Sub-heading 3402.90, in line with previous decisions and test reports, dismissing the Revenue's appeal on the grounds of consistency and lack of merit.