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TMI Blog2025 (4) TMI 363X X X X Extracts X X X X X X X X Extracts X X X X ..... d penalty under Section 11AC. Revenue, on the other hand, is in appeal before this Bench in relation to the said order only to the extent of not imposing the penalty under Rule 25 of Central Excise. Since both the appeals are inter related, we propose to take up both these appeals together and as a reference we take up the Appeal No. E/1231/2011, appeal filed by the appellant first. 2. The issue, in brief, is that the appellants were engaged in the manufacture of coconut oil in package upto 200ml on job work basis for M/s Shalimar Chemical Works Ltd. The Department felt that the said goods would be more appropriately classifiable under Heading 3305 as the coconut oil is capable of being used as hair oil, whereas the appellant had classifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er tests relatable to the other rules would not arise. In consequence, when there is no ambiguity or confusion about the classification of a particular product in the light of the clear heading in the First Schedule to the Act of 1985 and the corresponding entry in the HSN, resort to tools such as the 'common parlance test' would not arise. 40. Presently, it is an admitted fact that pure coconut oil is suitable for multiple uses. That notwithstanding, when a specific heading was created in Chapter 15, viz., Heading 1513, for 'coconut oil' along with other oils, it would not stand excluded therefrom so as to be classified as a cosmetic product under Heading 3305 in Chapter 33 in Section VI of the First Schedule, unless all the conditions r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat it was being sold as 'edible oil' and all parameters that had to be met in that regard were duly complied with. Edible coconut oil requires to be packed in containers using edible grade plastic. The coconut oil so sold must satisfy the requirements of the Food Safety and Standards Act, 2006, and be packaged in conformity with the Edible Oils Packaging (Regulations) Order, 1998. Further, edible oil would have a shorter shelf life than oil meant for cosmetic purposes and must meet the Indian Standards Specifications prescribed for edible oil which are different from the standards for hair oil. Significantly, the Standards of Weights and Measures (Packaged Commodities) Rules, 1977, provide that 'edible oil' can be packed in specified sizes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al value on the bottle. They have also shown us the lable which was being used during the material time, from which it is apparent that in respect of 200ml package there is a specific remark "100% pure edible grade vegetable oil". They had also made a submission before Commissioner that they had obtained license and other permissions to establish it use as edible oil in respect of said product. Thus, neither the product was subjected to any chemical treatment nor was sold as hair oil and is simply a refined coconut oil not chemically modified. It is also clear that it was never shown as intended for any cosmetic purpose, which is an essential ingredient for invoking under Chapter 3 of Chapter 33 read with the provisions in the General Notes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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