2017 (3) TMI 858 - AT - Central Excise

Classification of goods - whether the tooth paste namely Sensodent-K and Sensodent-KF having active ingredient namely Potassium Nitrate is classifiable under Chapter 3003.10 or as tooth paste under sub-heading 3306.10? - Held that - the product is in the form of tooth paste but it is for special need and marketed as use for sensitive teeth. For that purpose the main ingredient is Potassium Nitrate, therefore it is different from the normal tooth paste - In the case of IND Swift Ltd. 2008 (6) TMI 165 - CESTAT NEW DELHI the product was medicated dental paste in the brand name of Toss and Toss-K. Toss-K contains Potassium Nitrate B.P. 5% w/w, Principal Bench of this Tribunal held that classification held under sub-Heading 3003.10 was correct - appeal allowed - decided in favor of appellant.

Summary

Issues:
Classification of toothpaste containing Potassium Nitrate under Chapter 3003.10 or sub-heading 3306.10.

Analysis:
The issue in this case revolves around the classification of a toothpaste named Sensodent-K and Sensodent-KF, which contains Potassium Nitrate, under Chapter 3003.10 or as toothpaste under sub-heading 3306.10. The appellant argues that the product should be classified as a medicated dental paste under sub-heading 3003.10 due to the presence of the active ingredient Potassium Nitrate. This argument is supported by references to previous judgments, including IND Swift Ltd., ICPA Health Product Pvt. Ltd., and SPA Pharmaceuticals Pvt. Ltd., where similar products containing Potassium Nitrate were classified under Chapter 3003.10.

On the other hand, the Revenue representative reiterates the findings of the impugned order, which presumably classified the product differently. However, the Tribunal, after carefully considering both sides' submissions, concludes that the product, although in the form of toothpaste, is specifically marketed for sensitive teeth and contains Potassium Nitrate as the main ingredient. The Tribunal notes that previous decisions have classified similar products under Chapter 3003.10 based on the presence of active ingredients like Potassium Nitrate and Strontium Chloride, which are used for addressing tooth sensitivity.

The Tribunal relies on the settled legal position established in previous cases like IND Swift Ltd., ICPA Health Product Pvt. Ltd., and SPA Pharmaceuticals Pvt. Ltd. to determine that the issue is no longer res integra. Based on this legal precedent, the Tribunal classifies the product under sub-heading 3003.10, setting aside the impugned order and allowing the appeal. This decision is based on the specialized nature of the product and its intended use for sensitive teeth, distinguishing it from regular toothpaste formulations.

In conclusion, the Tribunal's judgment clarifies the classification of toothpaste containing Potassium Nitrate under Chapter 3003.10, emphasizing the importance of active ingredients and specialized purposes in determining the appropriate classification for such products.