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TMI Blog2002 (12) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... eals) in the impugned order. 2. Shri B.L. Narasimhan, learned Advocate, submitted that the products have been classified by them under sub-heading 3401.12 as Liquid Soap Solution; that these products are manufactured out of vegetable oil such as castor oil, acid oil, rosin and pine oil; that the pine oil is added for antiseptic and medicinal purposes; that these oils are used in the manufacturing process of soap as fatty acid is required and it is reacted with Alkali; that various vegetable oils are blended in a vessel and thereafter reacted with caustic soda; that after heating of the blend, hydrolysis of oil takes place and as a result of the said reaction the soap is obtained. He, further, submitted that as per Explanatory Note of HSN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if the product does not fall under Heading 34.01; that what is being manufactured by the appellants is nothing but soap as pine oil is added along with fatty acids and as such pine oil is added while manufacturing soap; that pine oil is a raw material for manufacturing liquid soap. In support of his contention he relied upon the New Encyclopaedia Britannica Vol. IX wherein it is mentioned that pine oil is also used in Odorant, Insecticides, Detergents, Liquid Soaps, etc. He also referred to "The Wealth of India" - Dictionary of Indian Raw Materials and Industrial products, according to which pine oil finds a wide range of industrial applications as it is used in paints, varnishes, laqured, distempers, soap and detergents and in perfumery an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority has classified the impugned products under 34.02 observing that soap has no doubt being used as a basis. Finally he submitted that the Commissioner (Appeals) has heavily relied upon the labels and catalogues of the products used by them for marketing the products; that it is well settled law that reliance cannot be placed on labels, etc. as these are used only for marketing purposes. He relied upon the decision in the case of Peshawar Soap Chemical Works v. CCE, Chandigarh, 2001 (138) E.L.T. 855 (T) = 2001 (46) RLT 400 (CEGAT) and Kothari Products Ltd. v. CCE, Kanpur, 2002 (139) E.L.T. 633 (T) = 2001 (47) RLT 173 (CEGAT). 4. Countering the arguments Shri R.D. Negi, learned SDR, submitted that the label of the product clearly men ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... placed in the case of Asian Paints India Ltd. v. CCE, 1988 (35) E.L.T. 3 (S.C.) wherein it was held that "interpreting items in statute like the Excise Act or Sales Tax Act whose primary object was to raise revenue and for which purpose to classify diverse products, articles and substances resort should be had not to the scientific and technical meaning of the terms or expressions used but to their popular meaning, that is to say meaning attached to them by those dealing in them." Reliance has also been placed on the decision in the case of Shree Vaidyanath Ayurved Bhawan Ltd. v. CCE, 1996 (83) E.L.T. 492 (S.C.) Finally, he submitted that as per Explanatory Note of HSN cleaning preparations serve for cleaning floors, windows and other surf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from a fatty acid or a mixture of fatty acid containing at least 8 carbon atoms. None of the sides have disputed the manufacturing process as given in the records. It is not the case of the Appellants that pine oil is a fatty acid which is required for manufacturing of soap. Pine oil, according to the Appellants themselves, is added for antiseptic and medicinal purposes. Thus it is clearly evident that it is a subsidiary constituent as described in HSN Explanatory Note. Further, it has not been controverted by the Appellants that both the products in question are used for cleaning floors, windows or other surfaces. In view of this we agree with the Revenue that both the products are nothing but cleaning preparations classifiable under Headi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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