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TMI Blog2018 (8) TMI 1672X X X X Extracts X X X X X X X X Extracts X X X X ..... uding spent animal black (3802.90.20), Wood Tar Oils etc (3807), Gum, Wood or Sulphate Turpentine and other Terpenic oils (3805), Culture media for Development or Maintenance of Micro-organisms or of Plant, human or animal cells (3821), Bio-diesel and mixtures thereof (3826) none of which are synthetic chemical products. The contention of the First Appellate Authority that simply because coils contain essential oils they do not fall under chapter 3808 is incorrect and based on wrong appreciation of the facts and ignoring that the chapter titles do not determine classification - there is a separate heading tariff item 3808 to cover insecticides and fungicides etc., which includes not only those which kills insects but also those which rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for Central Excise duty classifiable under chapter 38081091 Repellants for insects such as flies, mosquitoes . She, therefore, confirmed a Central Excise duty demand of ₹ 21,06,726/- under Section 11A invoking extended period along with education cess and with interest under Section 11AB. The Adjudicating Authority also imposed penalty equal to the duty i.e., duty + cess that is ₹ 21,08,985/- under Rule 25 of Central Excise Rules, 2002 read with Section 11AC of the Central Excise Act, 1944 and imposed a personal penalty of ₹ 10,000/- on Shri Raj Kumar Kedia, the Director of Respondent Company. Aggrieved, the respondent herein preferred an appeal before the First Appellate Authority, who vide the impugned order set aside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e contention of the appellants that the mosquito coils manufactured by them during the material period cannot be classified under Chapter 38 of the Central Excise Tariff as Miscellaneous Chemical Products and hence the question of demand of Central Excise duty on the impugned product does not arise. Needless to mention, the penalties imposed both on the unit as well as the Director are set aside. 8. In view of the above findings, I hold that the impugned order passed by the lower adjudicating authority is not sustainable in law and the same deserves to be set aside. I accordingly order for setting aside the impugned order. The subject appeals are allowed with all consequential relief to the appellants as per law. 3. The Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 006 (204) ELT 61 (Tri. Mumbai)] in which, it was held that mosquito coils are insecticides. iv) Bombay Chemicals Pvt. Ltd., [1990 (49) ELT 431 (Tribunal)] in which, it was held that the mosquito repellent coils are also used for repelling insects and not killing them are insecticides. This order of the Tribunal was upheld by the Apex Court in the case of Collector Vs. Bombay Chemicals (P) Limited [1994 (70) ELT A155 (S.C.)]. v) Aero Industries [2015 (322) ELT 190 (S.C)] in which, Baygon Mosquito specialist that is mosquito coils, mats and other mosquito repellants had been held to be covered by Sl. No. 37 of Notification No. 09/2000- CE (N.T.) for assessment under Section 4A of the Central Excise Act, 1944. 5. We have examined th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chemical products. If the logic of the First Appellate Authority has to be accepted all these entries in the Central Excise Tariff are incorrect because they are not synthetic chemical products. Although, the chapter heading is miscellaneous chemical products , nowhere does it indicate that they should necessarily be synthetic chemical products. Essential oils are also chemical by nature although they are extracted from natural sources. In fact, Gum, Wood, Turpentine etc., all derived from plant are included clearly in this chapter 3805. Similarly, products from plants and animals such as bone black (3802) and Wood Tar (3807) are also included in this chapter. Therefore, the contention of the First Appellate Authority that simply because c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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