2008 (12) TMI 115 - AT - Central Excise

Classification of potpourris - decorative floral arrangements meant to add or create exquisite beauty to a room or a place - their visual appeal can in no way be masked by the fragrance which is added to the dried flowers and parts of plants Revenue only submits that the addition of fragrance takes them out of Heading 06.03/06.04 term otherwise prepared in CTH Heading 6 is wide enough to cover the process of addition of aromatic oils or perfumes and as long as they continue to retain their character and shape, they will fall for classification only u/ch 6 When specific entry namely Heading 06.03/06.04, they cannot be relegated to the residuary entry i.e. Heading 33.7 potpourris are classifiable u/ch 6 of the CTA, 1975. Equivalent heading in the CET is Chapter 6 which is blank. Hence they are non-excisable

Summary

Issues: Classification of potpourris under Customs Tariff Act and Central Excise Tariff Act

Classification of Potpourris:
The case involved the classification of potpourris under the Customs Tariff Act and the Central Excise Tariff Act. The respondents, a 100% EOU, manufactured potpourris and other scented products, claiming them to be non-excisable under Chapter 6 of the CETA, 1985. The Revenue contended that potpourris should be classified under Chapter Heading 33.07 as room deodorizers. The process of manufacturing potpourris involved cleaning, bleaching, dyeing, and adding fragrances to dried botanicals, which were then packed and sold under the brand name "Sixth Sense." The Revenue argued that the primary purpose of potpourris was to spread fragrance, not as decorative items. However, the Tribunal noted that potpourris retained their natural beauty even after treatment and were considered decorative floral arrangements. The Tribunal referred to the HSN Explanatory Notes and concluded that the addition of fragrances did not change the essential character of potpourris, which should be classified under Chapter Heading 6 of the Customs Tariff Act. The Tribunal upheld the Commissioner (Appeals) finding that potpourris were non-excisable under Chapter 6 of the Customs Tariff Act.

Conclusion:
The Tribunal, consisting of Ms. Jyoti Balasundaram, Vice-President, and Shri P. Karthikeyan, Member (T), upheld the decision of the Commissioner (Appeals) regarding the classification of potpourris under Chapter 6 of the Customs Tariff Act, 1975. The Tribunal rejected the Revenue's appeal, confirming that potpourris were non-excisable under the Central Excise Tariff Act. The order was pronounced on 16-12-2008.