2000 (8) TMI 569 - AT - Central Excise

Summary

Issues involved:
Classification of shoe shampoo under Sub-heading 3405.10 or 3402.90 of the Central Excise Tariff Act.

Detailed Analysis:

1. Classification under Sub-heading 3405.10 (Polishes, creams, and similar preparations for footwear):
- The Appellant argued that the shoe shampoo falls under this sub-heading as it is specific to footwear cleaning, polishing, and shining.
- Reference was made to the functional character of the product, emphasizing that it is used for polishing, shining, and cleaning shoes.
- The Appellant contended that the term "similar preparations" in Heading 34.05 should be broadly interpreted to include cleaning preparations for footwear.
- Alternatively, it was suggested that the product could be classified under Sub-heading 3405.40 for scouring pastes and powders.

2. Counter-argument against classification under Sub-heading 3405.10:
- The Respondent argued that the shoe shampoo is not similar to polishes or creams but is a washing or cleaning preparation.
- Reference was made to a previous Supreme Court case to distinguish between similar and identical products.
- The Respondent highlighted that the product's purpose is not for polishing or adding shine to shoes but for cleaning.
- Explanatory Notes of the Harmonized System of Nomenclature (HSN) were cited to support the classification under Sub-heading 3402.90 for cleaning preparations.

3. Decision and Analysis by the Tribunal:
- The Tribunal compared the rival headings of 34.02 and 34.05 to determine the appropriate classification.
- It was noted that the impugned product primarily functions to clean shoes and remove dirt, falling under the category of washing and cleaning preparations specified under Heading 34.02.
- The Tribunal emphasized that Heading 34.05 specifically covers polishes, creams, and similar preparations for footwear, which the shoe shampoo did not correspond to in character or use.
- The Tribunal rejected the argument that the product should be classified under Sub-heading 3405.10 based solely on its use for shoes, as it did not resemble polish or cream.
- Additionally, the product did not fit the criteria for classification under Sub-heading 3405.40 as a scouring preparation, as it did not match the composition described in the HSN Explanatory Notes.
- Consequently, the Tribunal upheld the original order and dismissed the appeal filed by the Appellants.

In conclusion, the Tribunal ruled that the shoe shampoo manufactured by the Appellants should be classified under Sub-heading 3402.90 as a cleaning preparation, rejecting the arguments for classification under Sub-heading 3405.10 or 3405.40.