1990 (3) TMI 179 - AT - Central Excise

Mosquito repellent coils although used for repelling insects and not killing them are insecticides

Summary

Issues Involved:
1. Eligibility of "Tortoise Mosquito Coils" for exemption from excise duty under Notification No. 55/75-C.E., as an "insecticide".
2. Interpretation of the term "insecticide" in the context of the notification.
3. Consideration of evidence presented by both the appellants and the Revenue.
4. Applicability of the Insecticides Act and other statutory definitions.

Detailed Analysis:

1. Eligibility of "Tortoise Mosquito Coils" for Exemption from Excise Duty:
The primary issue in the appeal is whether "Tortoise Mosquito Coils" qualify for exemption from excise duty under Notification No. 55/75-C.E., as amended, by being classified as an "insecticide". The appellants argued that the product, which contains pyrethrin, should be considered an insecticide and thus eligible for the exemption. The Assistant Collector initially agreed, but the Collector of Central Excise (Appeals) reversed this decision, leading to the present appeal.

2. Interpretation of the Term "Insecticide":
The Tribunal had to interpret whether a mosquito repellent, which does not kill but repels mosquitoes, falls under the term "insecticide" as used in the notification. It was noted that the product does not kill mosquitoes but repels them, raising the question of whether repellents can be classified as insecticides.

3. Consideration of Evidence:
The Tribunal examined various pieces of evidence from both sides:
- Revenue's Evidence:
- Affidavit from the Assistant Collector, Central Excise, stating that the product is known as a repellent and not as an insecticide in the market.
- Affidavits from consumers and traders corroborating that the product is used and sold as a repellent.
- Appellants' Evidence:
- Letters from the Chief Commercial Superintendent and the Insecticide Officer of the Municipal Corporation of Greater Bombay classifying the product as a pesticide.
- Certificates from dealers and the Basic Chemicals Pharmaceuticals and Cosmetics Export Promotion Council recognizing the product as a pesticide.
- Reference books and dictionaries defining insecticides to include repellents.
- Explanatory notes from the Harmonized Commodity Description & Coding System (HSN) stating that insecticides include repellents.

4. Applicability of the Insecticides Act and Other Statutory Definitions:
The Tribunal noted that the definitions in the Insecticides Act and other statutory instruments were not directly relevant for interpreting the excise notification. The focus was on whether the term "insecticide" in the notification could encompass repellents. The Tribunal referenced previous decisions, including the Supreme Court's judgment in MSCO Pvt. Ltd. v. Union of India, which held that statutory definitions should not govern the meaning of terms in excise notifications.

Conclusion:
The Tribunal concluded that the term "insecticide" in the notification should be interpreted broadly to include repellents. This conclusion was based on the cumulative consideration of the evidence, including international reference materials and previous case law. Consequently, the Tribunal held that "Tortoise Mosquito Coils" are insecticides within the meaning of Notification No. 55/75, as amended, and thus eligible for the excise duty exemption. The appeal was allowed with consequential relief to the appellants.