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TMI Blog2004 (3) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... contested by the party. The adjudicating authority confirmed the classification of the product as Air Purifier under SH 3307.49, and accordingly, confirmed the demands of duty totalling to Rs. 4,81,904/- against the assessee. It also imposed a penalty of Rs. 45,000/- on them. The appeal preferred by the assessee to the Commissioner (Appeals) against the decision of the lower authority did not succeed. Hence the present appeal. 2. Heard both sides. Ld. Counsel for the appellants submitted that the product in question was composed of 99% para-dichlorobenzene (PDCB, for short) and 1 % perfume and was used as a repellent against moths. By virtue of its moth-repellent property, the product was an insecticide classifiable under SH 3808.10. Ld. Counsel relied on HSN Notes on Heading 38.08 and submitted that chemically defined products falling in Chapter 29, like PDCB, could be classified as disinfectants, insecticides, etc., when put up in packings for retail sale. He also relied on Classification Decision No. 193 of the Harmonized System Committee of the World Customs Organisation and claimed that the said decision supported classification of the appellants product under Heading 38.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t up in forms or packings for retail sale or as preparations or articles (for example, sulphur-treated bands, wicks and candles, and fly-papers). 3808.10 Insecticides, fungicides, herbicides, weedicides and pesticides. The Revenue has claimed the classification of the product under SH 3307.49. The requisite extracts from the Tariff Schedule are given below :- 33.07 Pre-shave, shaving or after-shave preparations [not containing substances specified in Note 1(c) to this Chapter], personal deodorants, bath preparations, depilatories and other perfumery, cosmetics or toilet preparations, not elsewhere specified or included; prepared room, deodorizers, whether or not perfumed or having disinfectant properties. 3307.10 3307.20 - - perfumed bath salts and other bath preparations : 3307.31 - 3307.39 - - Preparations for perfuming or deodorizing rooms, including odoriferious preparations used during religious rites: 3307.41 - Agarbatti , Dhoop and similar preparations, in whatever form 3307.49 - Other The Revenue has treated the product as a preparation for perfuming or deodori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt on its effect on the properties of PDCB. The observation contained in the test report that para-Dichlorobenzene finds use as a general insecticide is only one which reckons the chemical as a chemically defined product and not as a chemical in admixture with another chemical or ingredient, like the product in question. It cannot be employed in respect of a mixture of PDCB and perfume to say that the mixture is also an insecticide. The test report makes no difference vis-a-vis Shri Satya Sai Industries. Therefore, we are unable to distinguish the case of Shri Satya Sai Industries from the instant case in the way ld. Counsel has sought to do. The conclusion reached by the Tribunal in Sri Satya Sai Industries (supra) is squarely applicable to the instant case, unaffected by the test report referred to by ld. Counsel. 4. Counsel has also relied on the Classification Decision No. 193 of the Harmonized System Committee. The said decision is extracted below :- DESCRIPTION OF GOODS HS HEAD-INGS UNDER CONSIDER-ATION CLASSIFI-CATION DECISION CLASSIFICATION RATIONALE AND OBSERVATIONS 193 Preparations put up for retail sale in 300-ml aerosol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that disinfectants, insecticides, etc., when put up in packings for retail sale may or may not be mixtures and further that the unmixed products are mainly chemically defined products which would otherwise fall in Chapter 29, e.g. naphthalene or 1, 4-dichlorobenzene. This does not necessarily mean that a mixture containing 1, 4-dichlorobenzene (same as para-dichlorobenzene) is to be classified under the Heading. Neither is the subject goods any chemically defined product nor was it sold by retail as disinfectant, insecticide or the like. The product was, in fact, sold as air purifier. The appellants have not been able to substantiate their claim with reference to the above HSN notes. Their Counsel has argued that the subject goods is known as insecticide in common parlance. In our view, ld. Counsel cannot be heard to argue so on behalf of a party who themselves introduced their product as air purifier to the commoners/consumers. For this very reason, we are not impressed with the ld. Counsel s reliance on the Tribunal s decision in Peshawar Soaps Chemical Works (supra). 6. We shall also consult the relevant HSN Notes on Heading 33.07, which read : (IV) Preparations ..... X X X X Extracts X X X X X X X X Extracts X X X X
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