2016 (4) TMI 322 - AT - Central Excise

Classification - Bio-95 - Whether to be classified under CETH 3402.90 as per revenue or under 3402.10 as claimed by appellant - Held that - the product is Organic Surface Active Agent as per the main tariff entry under Chapter Heading 3402. Organic Surface Active Agent has been divided into two sub-headings, one is under 3402.10 as Sulphonated Castor Oil, Fish Oil or Sperm Oil and second is under 3402.90 as other . It is found that the appellant with effect from 01-12-2004 changed the formula and according to which they started using Sulphonated Castor Oil instead of Ground-Nut Oil. As per the composition, Sulphonated Castor Oil exists in the product to the extent of 95%. On this fact, the product is pre-dominantly preparation of Sulphonated Castor Oil. Therefore, in our view the product Bio-95 is clearly classifiable under the CETH 3402.10. It is found that 3402.10 is a specific entry in respect of product namely Sulphonated Castor Oil and 3402.90 is for other . It is a settled law that specific entry prevails over the general entry. Therefore, by applying the decision of Tribunal in the case of Unitex Dychem India Vs. Collector of C.Ex., New Delhi 1998 (5) TMI 99 - CEGAT, NEW DELHI , where the Tribunal decided the classification under 3402.10 of product containing 53% water and 47% Sulphonated Castor Oil. The present case of the appellant is on a better footing for the reason that in the captioned product Sulphonated Castor Oil used is to the extent of 95%, hence, the product Bio-95 is correctly classified under 3402.10. Classification - Herbal Pet Wash - Whether to be classified under CETH 3307.90 as per revenue or under 3401.11 as claimed by appellant - Held that - as per the Drug licence in respect of this product, the product is manufactured out of Neem, soap-nut and shikakai, the product is licensed as Ayurvedic Proprietary Medicine , the label of the product highlights that it protect the pet animals from insects & pests. The product is also not used as toilet soap, so with this fact the product is a medicated soap which finds an entry under CETH 3401.11. On the identical product, this Tribunal in the case of Commr. C.Ex., Chennai vs Calcutta Chemical Co. Ltd. 2008 (8) TMI 620 - CESTAT, CHENNAI decided the classification of the product. Therefore, the products namely Herbal Pet Wash are correctly classified under 3401.11. - Decided in favour of appellant

Summary

Issues:
Classification of products Bio-95 and Herbal Pet Wash under Central Excise Tariff Headings.

Classification of Bio-95:
The issue revolved around the classification of Bio-95 under Central Excise Tariff Headings. The appellant initially classified it under CETH 3402.90 but later changed it to 3402.10 to avoid assessment under Section 4A. The main argument was that the product predominantly consisted of Sulphonated Castor Oil, making it an 'Organic Surface Active Agent' falling under Chapter Heading 3402. The appellant contended that since Sulphonated Castor Oil was the main ingredient to the extent of 95%, it should be classified under 3402.10, a specific entry for the said product. The Tribunal agreed with the appellant's classification, citing the precedent of Unitex Dychem India case where a similar product containing 47% Sulphonated Castor Oil was classified under 3402.10. The judgment was deemed applicable as the present product contained 95% Sulphonated Castor Oil.

Classification of Herbal Pet Wash:
The issue centered on the classification of Herbal Pet Wash under Central Excise Tariff Headings. The appellant argued that the product, being a medicated soap for pet animals, should be classified under CETH 3401.11 as an 'Ayurvedic Proprietary Medicine' and not under Chapter 33 for 'perfumery cosmetic or toilet preparations.' The appellant supported their claim by highlighting the product's composition, licensing as an Ayurvedic medicine, and its intended use for protecting pets from insects. The Tribunal agreed with the appellant's classification, referencing a previous case where a similar product was classified under 3401.11. The judgment concluded that the products Bio-95 and Herbal Pet Wash were correctly classified under 3402.10 and 3401.11, respectively, setting aside the impugned order and allowing the appeal. The misc. application was also disposed of accordingly.

This detailed analysis of the judgment provides a comprehensive overview of the issues involved, the arguments presented by both parties, and the Tribunal's reasoning leading to the final decision.