2005 (10) TMI 110 - AAR - Central Excise

Whether the products (room deodorizers and room freshener) merit classification under Chapter 33 of the Central Excise Tariff Act, 1985 ?

Issues Involved:
1. Classification of the products (room deodorizers and room fresheners) under Chapter 33 of the Central Excise Tariff Act, 1985.
2. Interpretation of Notes 1(d), 3, and 4 of Chapter 33 in the context of the products containing alcohol.
3. Applicability of the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (MTP Act) to the products.

Issue-wise Detailed Analysis:

1. Classification of the Products under Chapter 33 of the Central Excise Tariff Act, 1985:
The applicant seeks advance ruling on whether room deodorizers and room fresheners merit classification under Chapter 33 of the Central Excise Tariff Act, 1985. The products consist of a holder and a dispenser filled with odoriferous substances, which are used in various public and private spaces.

2. Interpretation of Notes 1(d), 3, and 4 of Chapter 33:
- Note 1(d): This note excludes perfumery, cosmetics, and toilet preparations containing alcohol or narcotics from Chapter 33, referring to definitions in the MTP Act. The expressions "perfumery" and "cosmetics" are not defined in the MTP Act and are understood in their ordinary meaning. "Toilet preparation" is defined as any preparation intended for use in the toilet of the human body or in perfuming apparel, including deodorants and perfumes.
- Principles of 'noscitur a sociis' and 'ejusdem generis': These principles of statutory interpretation were discussed to understand the context and meaning of the terms used in the statutes. The court highlighted that general words following specific ones must be confined to things of the same kind.
- Application to the Case: The court concluded that the products in question do not fall within the meaning of perfumery, cosmetics, or toilet preparations as defined in the MTP Act, as they are not used in relation to the human body. Therefore, they are not excluded by Note 1(d) to Chapter 33.
- Notes 3 and 4: These notes are explanatory. Note 3 includes products suitable for use as goods of these headings and sold in retail packings, excluding aqueous distillates and solutions of essential oils. Note 4 enumerates certain products falling within the purview of perfumery, cosmetic, or toilet preparations but is not exhaustive. The products in question do not fall in the excluded categories and are suitable for retail use.

3. Applicability of the MTP Act:
- Commissioner's Argument: The Commissioner argued that the products fall within the meaning of "perfumery," "cosmetics," or "toilet preparations" under the MTP Act as they contain alcohol, and thus cannot be classified under Chapter 33.
- Applicant's Contention: The applicant contended that the products should be classified under Heading 3307 of the Tariff Act, as they do not fall within the definitions in Note 1(d) of Chapter 33 when interpreted using the principles of 'noscitur a sociis' and 'ejusdem generis'.
- Court's Conclusion: The court held that the products do not have a nexus with the human body and thus do not fall within the definitions in the MTP Act. Consequently, they are not excluded from Chapter 33 solely because they contain alcohol.

Conclusion:
The products in question, although containing alcohol, are classifiable under Chapter 33 of the Central Excise Tariff Act, 1985, specifically under Heading 3307 49 00, as they do not fall within the definitions of perfumery, cosmetics, or toilet preparations in the MTP Act. The court ruled that the inclusion of alcohol does not automatically exclude the products from Chapter 33 if they do not meet the criteria set forth in the MTP Act.

Pronouncement:
This ruling was pronounced in the open Court of the Authority on the 6th day of October, 2005.

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