2003 (11) TMI 77 - SC - Central Excise

Classification of goods - Whether Acquadermis , a preparation made by the appellant falls under Entry 3401.10 (Soap in any form) or Entry 3307.90 - Held that - Two certificates are issued one by the Deputy Chief Chemist and another by the Senior Drugs Inspector, Government Analysit (Drugs) as to the nature of product in question. It is contended only the report of the Deputy Chief Chemist has been considered which apart from analysing the product as such has taken note of other aspects such as aggressive sales promotional information supplied by the appellant. Further the report sent by the Government Analyst (Drugs) has not been taken note of at all. The Tribunal has not examined the nature of product to conclude as to under which entry it falls. Nor, the other authorities have examined the matter in proper perspective - Matter remanded back - Decided in favour of assessee.

Summary

Issues:
Classification of 'Acquadermis' under Entry 3401.10 or Entry 3307.90; Consideration of certificates from Deputy Chief Chemist and Senior Drugs Inspector; Failure of authorities to properly examine the nature of the product; Remand of the matter to the Collector of Central Excise for fresh consideration; Abatement issue remanded by the Tribunal.

Classification Issue:
The Supreme Court was tasked with determining whether 'Acquadermis' should be classified under Entry 3401.10 (Soap in any form) or Entry 3307.90. The appellant argued that the product is a liquid soap falling under Entry 3401.10, while the authorities classified it under Entry 3307.90. The Court noted discrepancies in the consideration of certificates from the Deputy Chief Chemist and Senior Drugs Inspector. The Deputy Chief Chemist's report, which analyzed the product and considered sales promotional information, was given weight, but the report from the Government Analyst (Drugs) was ignored. The Court found that the authorities failed to properly assess the nature of the product, leading to an incorrect classification. Consequently, the Court set aside the previous orders and remanded the matter to the Collector of Central Excise for a fresh review.

Abatement Issue:
Regarding the question of abatement, the Tribunal had already remanded the matter. The Court considered this remand as an additional reason to also remand the issue. As a result, the Court partially allowed the appeal, emphasizing the need for a comprehensive reevaluation of both the classification and abatement matters by the appropriate authorities.