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TMI Blog1996 (9) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellants herein in terms of Notification 12/93-C.E., dated 28-2-1993 holding that the goods attracted 20% ad valorem duty in terms of Sl. No. 1 of the Notification as the goods are soap for toilet use. In addition, a penalty of Rs. 4 lakhs has been imposed. In Appeal No. E/1884/95-C, the Commissioner (Appeals) has classified the goods under sub-heading 3401.10 of CETA, 1985 and held that the goods attracted duty @ 20% ad valorem under Sl. No. 1 of the Table annexed to Notification 12/93 and set aside the order of the Assistant Commissioner contained in the approval to the Classification list No. 26/93-94. 2. There is no dispute as to the classification of the goods under CETA as both sides join issue with classification under sub-hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of further extensive processes before becoming toilet soap and in connection with as to what is meant by toilet soap, he refers to the decision of the Hon ble Supreme Court in the case of Oswal Agro Mills Ltd. reported in 1993 (66) E.L.T. 37. In Paragraph 8 of the judgment, the Hon ble Supreme Court held as follows : Toilet soap being of everyday household use for the purpose of the bath and having removed its separate identity which it enjoyed preceding amendment and having been not specifically included in other sorts", it took its shelter in commercial parlance under household . As stated if anybody goes to the market and asks for toilet soap he must ask only for household bathing purpose and not for industrial or other sorts. Eve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chem reported in 1995 (75) E.L.T. 721 (SC) = 1995 (6) RLT 333 (SC) and Pushpam Pharmaceuticals reported in 1995 (78) E.L.T. 401 to support his contention that there has been no suppression or wilful mis-statement with intent to evade payment of duty. 3. Opposing the submissions of the learned Counsel, learned DR, Shri Madan draws our attention first to the notification and undisputed classification of the item under sub-heading 3401.10. He submits that the expression soap for toilet use contained in Sl. No. 1 of the Table annexed to the Notification means any soap that goes further for toilet use, since sub-heading 3401.10 covers soap in any form and, therefore, since soap noodles in this case are further converted into toilet soap eith ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis for holding that the goods are covered by Sl. No. 1 of the Table annexed to the Notification is set out in Paragraph 7 of the order of the Collector which is as follows : 7. (i) Soap in any form falls under Chapter sub-heading No. 3401.10. Therefore, soap in noodle form is also soap. As far as effective rate is concerned, soap for toilet use whether or not containing medicament or disinfectants attracts 20% ad valorem under Notification No. 39/87 as amended by Notification No. 12/93, dated 28-2-1993, while other soaps attract 5% ad valorem till the issue of Notification No. 12/94-C.E., dated 1-3-1994 when the rate of duty on other soaps was enhanced to 10% ad valorem. (ii) By virtue of the agreement entered into with M/s. Calcutt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason that the Notification is not in respect of toilet soap but in respect of soap (in all forms) for toilet use. The use may be immediate or subsequent. 4.1 The adjudicating authority has held that the soap noodles manufactured are for toilet use because in terms of the agreement entered into with M/s. Calcutta Chemicals Company Ltd. the raw materials received, specifications prescribed and the soap noodles manufactured clearly indicate that the soap noodles ultimately were used in the manufacture of toilet soap. We agree with the learned Counsel that what is relevant is the stage of the goods at the time of presentation for assessment. The goods as they are cleared are not soap for toilet use and it is only after they are further p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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