2008 (9) TMI 61 - SC - Customs

Tooth powder - whether the product Dant Mukta imported by the respondent is classifiable under SH 3306.90 or 3306.10 and whether the exemption under Notification No. 6/03-C.E. and Notification No. 40/2002-Cus., is available - Dant Mukta are used as raw materials for manufacture of Lal Dant Manjan - Tribunal decided in favour of assessee that it is classifiable under SH 3306.10 order of tribunal is correct revenue s appeal is dismissed

Summary

Issues:
Classification of imported product 'Dant Mukta' under sub-heading 3306.90 or 3306.10 of the Central Excise Tariff Act, 1985 and eligibility for exemption under Notification No. 6/03-C.E., dated 1-3-2003 and Notification No. 40/2002-Cus., dated 12-4-2002.

Analysis:

1. Classification of 'Dant Mukta':
The primary issue in the case revolved around the classification of the imported product 'Dant Mukta' under sub-heading 3306.90 or 3306.10 of the Central Excise Tariff Act, 1985. The Commissioner of Customs initially classified the product under sub-heading 3306.90, a decision upheld in subsequent orders. However, the Tribunal ruled in favor of the assessee, citing dropped proceedings by the Department and the use of 'Dant Mukta' as raw material for 'Lal Dant Manjan'. The Tribunal's decision was based on the similarity between 'Dant Mukta' and 'Dant Shakti', leading to a classification under Heading 3306.10. The Tribunal's decision was supported by a previous judgment reported in 2004 (171) E.L.T. 109 (Tri.-Kolkata).

2. Appeal and Dismissal:
Following the Tribunal's decision, the Revenue filed an appeal before the Court in the assessee's case, which was dismissed on grounds of delay and merits. The Court's decision, dated 12th July 2005, affirmed the Tribunal's ruling on the merits of the case. The present appeals were found to be squarely covered by the Court's previous decision, leading to their dismissal. The Court held that the earlier decision affirmed the Tribunal's decision on merits, resulting in the dismissal of the present appeals. No costs were awarded in the matter.

In conclusion, the judgment centered on the classification of the imported product 'Dant Mukta' and its eligibility for exemption under specific notifications. The Tribunal's decision in favor of the assessee was supported by the Court's previous ruling, leading to the dismissal of the present appeals. The legal analysis highlighted the importance of previous decisions and the consistency in applying legal principles to similar cases.