Central Excise - Chapter 34 - Classification of 'Nirma' brand toilet soap and similar soaps containing a small percentage of Alpha Olefin Sulphonate - Clarification regarding - Central Excise - 31/89

Central Excise - Chapter 34 - Classification of 'Nirma' brand toilet soap and similar soaps containing a small percentage of Alpha Olefin Sulphonate - Clarification regarding Circular No. 31/89 Dated 12-5-1989 [From F. No. 92/8/88-CX.3] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Central Excise - Chapter 34 - Classification of 'Nirma' brand toilet soap and similar soaps containing a small percentage of Alpha Olefin Sulphonate - Clarification regarding. With reference to the correspondence resting with the P.C. Bombay letter No.V-34(30)6/T/88, dated 25-10-1988 [Not Printed] on the above subject, it is directed to say that the issue raise by P.C. has since been examined by the Board in depth. 2. The Board is of the view that the classification of the goods in question under sub-heading No. 3401.20 was ruled out in view of the fact that this particular entry covered Organic Surface Active Products and preparations for use as Soap in the form of bars, cakes, moulded pieces or shapes. Therefore, in order to be classifiable as a product under sub-heading No. 3401.20, it ought to be composed of the ingredients which are 'Organic Surface Active Product's. In the case of 'Nirma' brand toilet soap, the Board observed that as per the Chemical Examiner's report, it was composed of 76% soap, calculated as Sodium Palmintate, a small amount of colouring matters, perfumes, moisture and fillers, apart from a very small percentage of Alpha Olefin Sulphonate, an 'Organic Surface Active Agent'. As there was a predominance of Sodium salt of fatty acids, so notwithstanding a small percentage of Organic Surface Active Agent, e.g. Alpha Olefin Sulphonate, the product, namely, 'Nirma' brand toilet soap would more appropriately be classifiable under sub-heading No. 3401.10 as 'soap' in any form. The Board also felt that even by applying the statutory Rules for Interpretation of the Schedule to the Central Excise Tariff Act, 1985, the product under reference would squarely fall within sub-heading No. 3401.10 as 'Soap' in any form as the essential character was given to the product by Sodium salt of fatty acids, which had a preponderant predominance over 'Organic Surface Active Agent, namely. Alpha Olefin Sulphonate. The product is basically a toilet soap and is also being marketed as soap, it was observed. 3. In view of the facts, the Board decided that the more appropriate classification of 'Nirma' brand toilet soap, which contained 76% of Sodium Salt of fatty acids and a very small percentage of Alpha Olefin Sulphonate, an Organic Surface Active Agent, would be under sub-heading No. 3401.10 of the Schedule to the Central Excise Tariff Act, 1985 and the decision already taken and communicated in Board's Circular No. 20/88-CX.3, dated 9-9-1988 in this regard needs not be interfered with.