1999 (12) TMI 158 - AT - Central Excise

Summary

Issues:
Classification of "White Petroleum Jelly" - Chapter 27 (Petroleum Jelly) vs. Chapter 33 (Cosmetics)

Analysis:
1. Issue of Classification: The main issue in this case revolves around the classification of "White Petroleum Jelly" packed in containers as either falling under Chapter 27 as Petroleum Jelly or under Chapter 33 as cosmetics. The Revenue argues that the additional legends on the containers, such as "Lip Guard" and "an effective dressing for burns, cuts, scrapes etc.," indicate a cosmetic use, thus warranting classification under Chapter 33. The Revenue relies on Chapter Note 33 in the HSN to support their argument.

2. Revenue's Argument: The Revenue, represented by the ld. DR, contends that the legends on the containers suggest a cosmetic use of the product. They argue that the use of terms like "Lip Guard" and "relieves dry lips" in the packaging indicates a cosmetic purpose, making the product fall under Chapter 33. They also reference a previous case to support their position.

3. Respondent's Counter: The Consultant for the respondents vehemently counters the Revenue's submissions. They argue that the product is clearly labeled as "White Petroleum Jelly - I.P.," conforming to the Indian Pharmacopoeia standards. They distinguish a previous case cited by the Revenue, emphasizing that the product in question is purely White Petroleum Jelly without any additional ingredients.

4. Legal Interpretation: The Tribunal carefully considers the arguments presented by both parties. They emphasize that the product in question is purely White Petroleum Jelly, as clearly indicated on the containers. The Tribunal notes that the specific entry in the tariff covering White Petroleum Jelly prevails over other considerations, such as the legends on the packaging. They also highlight that the product's use as a Lip Guard or dressing for burns does not alter its classification as White Petroleum Jelly-I.P.

5. Conclusion: After thorough analysis, the Tribunal concludes that the product should be classified under Chapter sub-heading 2712.10 as "White Petroleum Jelly-I.P." The Tribunal finds no merit in the Revenue's appeals and dismisses them, upholding the orders-in-appeal. The decision is based on the clear labeling of the product and its conformity to the standards of Indian Pharmacopoeia, overriding any cosmetic implications suggested by the packaging legends.