2002 (9) TMI 105 - SC - Central Excise

Summary

Issues involved: Classification of 'Kum-Kum pencil' u/s Heading 3304.00 or 3307.00 of the Central Excise Tariff Act, 1985 and entitlement to benefit of Notification No. 235/1988-C.E.

Judgment Summary:

The appeal concerned the classification of 'Kum-Kum pencil' under the Central Excise Tariff Act, 1985 and its eligibility for the benefit of Notification No. 235/1988-C.E. The Assistant Collector and the Collector (Appeals) classified 'Kum-Kum pencil' under Heading 3307.00, but found it to be a form of 'Kum-Kum' eligible for the notification benefit. However, the Tribunal excluded 'Kum-Kum' in pencil form from the notification's benefit, contrary to other forms. The Supreme Court held that since 'Kum-Kum' is available in various forms and the notification did not specify exclusion, 'Kum-Kum' in pencil form should also be included.

Notification No. 235/1986-C.E. exempted goods under sub-heading 3307.90, including 'Kum Kum' and kajal. The notification encompassed 'Kum Kum' in multiple forms, as evidenced by its availability in the market for making a forehead mark. The Court found no valid reason to exclude 'Kum-Kum' in pencil form from the notification's scope, as the general term 'Kum-Kum' should cover all its forms. Consequently, the Court set aside the Tribunal's order and reinstated that of the Collector (Appeals).

The civil appeal was allowed in favor of the manufacturer-assessee, with no costs incurred. Another appeal was also allowed in line with the previous judgment, with no additional costs imposed.