2004 (1) TMI 226 - AT - Customs

Summary

Issues:
Classification of the product "Dant Mukta" imported from Nepal for the manufacture of "Lal Dant Manjan" under Chapter Heading 33.06 of CTA, 75 and CETA, 1985 or Heading 3003.39.

Analysis:
1. The dispute revolves around the correct classification of "Dant Mukta" for the manufacture of "Lal Dant Manjan." The Commissioner (Appeals) accepted the classification under Chapter Heading 33.06, following a previous Tribunal order. The Tribunal emphasized that the product's lack of garlic powder does not automatically classify it as an Ayurvedic medicine, citing a Supreme Court judgment. The product's packaging and usage align with tooth powder, leading to its classification under Heading 33.06.

2. The Commissioner (Appeals) upheld the classification under Chapter Heading 33.06, emphasizing judicial discipline to follow higher authority judgments. The adjudicating authority's refusal to accept the Tribunal's decision based on Dabur India's stance was deemed invalid. The Revenue's reliance on other references and notifications was dismissed, supporting the classification under Heading 33.06 for "Dant Mukta."

3. The Revenue contended that "Dant Shakti" and "Dant Mukta" are distinct products due to ingredient variations. However, the absence of black pepper in "Dant Shakti" does not affect the classification under Heading 33.06. The benefit under Notification No. 6/2000-C.E. was challenged, arguing that the product does not qualify as Tooth Powder even if classified under Heading 3306.10.

4. The Respondents supported the Commissioner (Appeals) decision, citing consistency with previous Tribunal orders. The Revenue failed to present new grounds to alter the classification under Heading 3306. The product samples were confirmed as Dant Manjan or Tooth Powder, supporting its classification under Heading 33.06.

5. The Commissioner of Customs, Patna's orders and technical opinions reinforced the classification under Heading 3306. The Revenue's alternative plea regarding the notification benefit was dismissed due to the primary focus on product classification. The appeals filed by the Revenue were ultimately rejected based on the consistent classification under Heading 33.06.

In conclusion, the judgment reaffirms the classification of "Dant Mukta" under Chapter Heading 33.06 for the manufacture of "Lal Dant Manjan," dismissing the Revenue's challenges and alternative pleas.