Central Excise - Classification of Coconut Oil packed in small containers - Clarification regarding

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..... me is classifiable as a fixed vegetable oil under Chapter 15 or as a cosmetic preparation under Central Excise Tariff Act, 1985. 2. In this connection, kind attention is invited to the minutes of Conference of the Collectors of Central Excise, North Zone, held at Lucknow on 20th and 21st September, 1991 circulated vide Board's letter F.No. 112/15/91-CX.3, dated 11-10-1995. The Conference had decided that coconut oil in small packings manufactured from coconut oil purchased in bulk falling under Chapter 15 would not merit classification under Heading 33.05 if it did not bear labels/literature or other indications that it was for use as preparations for use on the hair. The Director General (Anti Evasion) was also asked to conduct an enquir .....

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..... nable its classification as a product falling under Chapter 33 it must satisfy the requirements of Chapter Note 2 and 6 of Chapter 33 of CETA. Note 2 of Chapter 33 applies, inter alia, to " the products whether or not mixed, suitable for use as goods of these headings and put up in packings with label, literature or other indications that they are for use as cosmetics or toilet preparations or put up in a form clearly specialised to such use". Thus, though an oil may be capable of being used as hair oil the product must satisfy the above criteria to enable its classification under Chapter 33. The label/literature on the packing of coconut oil under consideration do not meet above criteria. 6. Note 6 of Chapter 33 says that Heading No. 33. .....

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..... arried off by super-heated steam (which decomposes and saponifies them). Further, under general description at p.101 of HSN, it has been stated that Chapter 15 covers, inter alia, animal or vegetable fats and oils, whether crude, purified or refined or treated in certain ways (e.g. boiled, sulphurised or hydrogenated). Also Heading 15.13 in HSN covers coconut oil and its fraction whether crude or refined. Though it is true that the headings, in HSN are not aligned with CETA, 1985, the HSN notes are a guiding factor they clearly bring out that coconut oil is a fixed vegetable oil which merits classification under Chapter 15. 8. It is seen that prior to 1-3-1995 filtered coconut oil merited classification under 1503.90 while coconut oil whi .....

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