1999 (10) TMI 241 - AT - Central Excise

Summary

Issues Involved:
Classification of a product named 'Clearasil Daily Soap Wash' (CDSW) under Chapter sub-heading 3402.00 or 3401.10 for excise duty purposes.

Analysis:
1. The appellants initially classified CDSW under Chapter sub-heading 3402.00 but later sought to amend it to 3401.10, claiming it was a soap. The Department issued a show cause notice for classification under 3402.90.
2. The appellants argued CDSW was rightly classifiable under 3401.10 as it was a liquid soap with anti-bacterial properties, contending it was known as soap in common parlance.
3. The Department, through a corrigendum, suggested classification under Chapter Heading 3304.00 for skin care preparations, relying on Chapter Note 5 of Chapter 33.
4. The Assistant Collector held CDSW fell under Chapter Heading 3304.00 as a skin care product based on usage directions and ingredients, emphasizing its skin care nature and therapeutic effects.
5. The Commissioner (Appeals) upheld this classification under Chapter Heading 33.04 for anti-acne preparations, considering the product's cleansing properties and therapeutic effects against acne.
6. The appellants argued CDSW was solely a soap and should be classified under 3401.10, not 3304.00, emphasizing its soap base and anti-bacterial properties.
7. The Tribunal considered the nature of CDSW as primarily a liquid soap and concluded it fell under Chapter sub-heading 3401.10, set aside the impugned order, and allowed the appeal, rejecting the Department's reliance on product literature and the corrigendum's validity.

This comprehensive analysis highlights the classification dispute over 'Clearasil Daily Soap Wash' (CDSW) and the arguments presented by both parties regarding its categorization under different chapter sub-headings for excise duty purposes. The Tribunal ultimately ruled in favor of the appellants, classifying CDSW under Chapter sub-heading 3401.10 as a liquid soap, rejecting the Department's classification under Chapter Heading 3304.00 for skin care preparations.