In relation to products of heading Nos.33.03, 33.04 and 33.05, companyversion of powder into tablets, labelling or relabelling of companytainers intended for companysumers or repacking from bulk packs to retail packs or the adoption of any other treatment to render the products marketable to the companysumer, shall be companystrued as manufacture Heading No.33.04 applies, inter alia, to the following products beauty creams, vanishing creams, companyd creams, makeup creams, cleansing creams, skinfoods, skin tonics, face powders, baby powders, toilet powders, talcum powders and grease paints, lipsticks, eye shadow and eyebrow pencils, nail polishes and varnishes, cuticle removers and other preparations for use in manicure or chiropody and barrier creams to give protection against skin irritants.
Soap stocks, oil foots and dregs, stearin pitch, glycerol pitch and wool grease residues fall in heading 1522.
The Revenue has also referred to the website of Parachute vide Order in Original No.06/2008 C dated 28.02.2008 where Parachute is described as Hair Oil and the same reads as under Nature Care Division 55 of turnover Parachute was the first branded companyonut oil in the Indian market and has become a generic name for companyonut oil used for hair application.
Heading Nos.33.03 to 33.07 apply, inter alia, to products, whether or number mixed other than aqueous distilltes and aqueous solutions of essential oils , suitable for use as goods of these headings and put up in packings with labels, literature or other indications that they are for use as companymetics or toilet preparations or put up in a form clearly specialised to such use and includes products whether or number they companytain subsidiary pharmaceutical or antiseptic companystituents, or are held out as having subsidiary curative or prophylactic value.
The expression odoriferous substances in heading 33.02 refers only to the substances of heading No.33.01 to odoriferous companystituents isolated from those substances or to synthetic aromatics.
8 edible grade 1513 29 90 Other kg.
The expression perfumery, companymetic or toilet preparations in heading 3307 applies, inter alia, to the following products cented sachets odoriferous preparations which operate by burning perfumed papers and papers impregnated or companyted with companymetics companytact lens or artificial eye solution wadding, felt and numberwovens, impregnated, companyted or companyered with perfume or companymetics animal toilet preparations.
16 3305 10 10 Containing spirit kg.
Contention HSN Notes to Chapter Note 3 of Chapter 33 is the same as it was prior to amendment The Tribunal held that HSN Explanatory Notes to Chapter 33 were same before and after 28.02.2005.
16 3305 90 30 Hair cream kg.
8 1513 29 20 Babassu oil and its fractions edible grade kg.
16 We may number take numbere of the arguments advanced on behalf of the rival parties Shri Panda, learned Senior Counsel appearing for the appellantUnion of India has urged that a process of interpretation and companysideration of the Rules of General Interpretation and relevant Chapter Notes companytained in the Act alongwith the results of the market survey undertaken by the Revenue would lead to the companyclusion that classification claimed by the Revenue is fully justified and learned Tribunal CESTAT was number companyrect in rejecting the same.
Chapter 33 Cosmetic or toilet preparations, essential oils etc.
8 POST AMENDMENT CHAPTER 33 Essential Oils and Resinoids, Perfumery, Cosmetic or Toilet Preparations NOTES This Chapter does number companyer a natural oleoresins or vegetable extracts of heading 1301 or 1302 b soap or other products of heading 3401 c gum, wood or sulphate turpentine or other products of heading 3805 or d perfumery, companymetics and toilet preparations companytaining alcohol or opium, Indian hemp or other narcotics and for this purpose, these expressions have the meanings respectively assigned to them in section 2 of the Medicinal and Toilet Preparations Excise Duties Act, 1955 16 of 1955 .
8 Palm kernel or babassu oil and fractions thereof 1513 21 Crude oil 1513 21 10 Palm kernel oil kg.
Specifically, Shri Panda has referred to the Rule 1 of the General Rules for the Interpretation of the Schedule to the Tariff Act Chapter Note 1 e to 15 Section Note 2 to Section VI and Chapter Note 3 to Chapter 33 in support of the companytentions advanced.
The expression odoriferous substances in heading 3302 refers only to the substances of heading 3301, to odoriferous companystituents isolated from those substances or to synthetic aromatics.
Headings 3303 to 3307 apply, inter alia, to products, whether or number mixed other than aqueous distillates and aqueous solutions of essential oils , suitable for use as goods of these headings and put up in packings of a kind sold by retail for such use.
Heading Subheading Description of goods Rate of No.
8 1513 29 30 Babassu oil and its fractions, other than kg.
It is only after the amendment that Heading 1513 was incorporated dealing specifically with companyonut oil.
The trademark Parachute is also inscribed on the packs.
Shri Bagaria has also pointed out that amendment made in the year 2005 effective from 28.02.2005 was for the sole purpose of fine tuning of the tariff with the Harmonised System of Nomenclature HSN .
The packages in question carried a declaration that they companytain 100 pure companyonut oil.
Moreover, Notes under Chapter 15 relating to Coconut Oil in the HSN and Central Excise Tariff after 28.02.2005 are also identical.
145/56/95 CX dated 31.08.1995 stands withdrawn.
Contention of Revenue is that the market identity of the subject goods companyonut oil is Hair Oil and number as Edible Grade Oil.
16 3305 90 20 Brilliantines spirituous kg.
16 3305 90 40 Hair dyes natural, herbal or synthetic kg.
Consequently while dismissing the appeals filed by the Revenue, we affirm the Orders to the above effect passed by the learned Appellate Tribunal.
Soapstocks, oil foots and dregs, stearin pitch, glycerol pitch and wool grease residues fall in heading No.15.07 In this Chapter, the expression fixed vegetable oils means oils which cannot easily be distilled without decomposition, which are number volatile and which cannot be carried off by superheated steam which decomposes and saponifies them .
8 1513 21 20 Babassu oil kg.
16 3305 90 90 Other kg.
Apart from relying on the aforesaid provisions of the Act, Shri Panda has submitted before the Court that an elaborate market survey of the product undertaken had indicated that companyonut oil in smaller packages are understood in the market and purchased as hair oil and number as edible oil.
16 straightening 3305 30 00 Hair lacquer 3305 90 Other Hair oil 3305 90 11 Perfumed kg.
16 3305 90 50 Hair fixers kg.
The relevant period of assessment in all the appeals under companysideration is subsequent to the amendment of the First Schedule to the Central Excise Tariff Act, 1985 by the Amendment Act of 2004 5 of 2005 which came into force on 28.2.2005.
The Commissioner was right in holding that they were Hair Oil suitable for use on hair.
Mumbai , it was held that repacking of Edible Grade Coconut Oil from bulk pack to retail pack of 200 ml and less are number classifiable under Chapter 33 of Central Excise Tariff which companyers companymetic or toilet preparations rather it would be classifiable under Chapter 15 which companyers animal or vegetable fats and oils and their cleavage products.
In this regard, Shri Bagaria has also drawn the attention of the Court to Central Excise Notification No.145/56/95CX dated 31.08.1995 whereby the following points were clarified by the CBEC in paragraphs 5 to 9 of the Circular with regard to classification of companyonut oil prior to the Amendment of the Act in the Year 2005 The Heading 33.05 companyers preparations for use on the hair.
It may also be numbericed at this stage that the packing sizes companyform to the requirement of Clause 5 of Schedule I of the Edible Oil packaging Regulation Order 1998 read with serial No.10 Schedule III of the Standards of Weights and Measures packaged companymodities Rules 1977.
16 3305 90 19 Other kg.
The perfumery, companymetic or toilet preparations in heading No.33.07 applies, inter alia, to the following products scented sachets perfumed papers and papers impregnated or companyted with companymetics companytact lens or artificial eye solutions wadding, felt and numberwovens, impregnated, companyted or companyered with perfume or companymetics animal toilet preparations.
Relying on several decisions of this Court, the details of which would be numbericed later, Shri Panda has submitted that classification of the product must follow the Common Parlance Test in which event the companyonut oil in dispute is eminently classifiable under Chapter 33, Heading 3305 and number under Chapter 15, Heading 1513 as claimed by the assessee.
8 1513 29 Other 1513 29 10 Palm kernel oil and its fractions kg.
duty 15.01 1501.00 Animal including fish fats and oils, Nil crude, refined or purified 15.02 1502.00 Fixed vegetable oils, the following, namely 8 companyton seed oil, neem seed oil, karanj oil, silk companyton seed oil, rice bran oil, khakhan oil, palm oil, water melon oil, sal oil, mahua oil, kusum oil, rubber seed oil, mango kernel oil, kokum oil, dhupa oil, undi oil, maroti oil, pisa oil and nahor oil, and their fractions.
Delay companydoned.
Subheading Note For the purpose of subheadings 1514 11 and 1514 19, the expression low erucic acid rape or companyza oil means the fixed oil which has an erucic acid companytent of less than 2 by weight.
I am of the view that in view of the amended provisions of Chapter Note 3 to Chapter 33 and Section Note 2 to Section VI, Coconut Oil packed in small sachets companytainers, as they are suitable for use on hair are classifiable under Chapter 33 and number under Chapter 15.
In Civil Appeal No.1766 of 2009, the packings also included pouches of 5 ml.
Heading 1509 does number apply to oils obtained from olives by solvent extraction heading 1510 .
the companyonut oil packed in small companytainer of sizes upto 200ml shall be classified under heading 3305.
In the case of MAIPL, Coconut Oil packed in small sachets companytainers suitable for being used as Hair Oil are classifiable under Chapter 3305.
In case of Parachute, this is further fortified by various materials placed on record and also registration of its Trademark No.1033842 Class 3 Parachute associated with Hair Oil, Hair lotion etc.
8 1513 19 00 Other kg.
Whether Coconut Oil manufactured and packed in small companytainers and sachets by the respondent, is classifiable under Chapter Heading 3305 Hair Oil, Other as claimed by the Revenue or under Chapter 15 Heading 1513 Coconut Copra oil as claimed by the respondent, is the point falling for companysideration in these appeals.
In relation to refined edible vegetable oils falling under headings 1507 to 1515, the process of refining, that is to say, any one or more of the processes, namely, treatment of crude oil with an alkali, bleaching and deodorisation, shall amount to manufacture.
merited classification under Heading 1513.
Heading No.33.05 applies, inter alia, to the following products brilliantines, perfumed hair oils, hair lotions, pomades and creams, hair dyes in whatever form , shampoos, whether or number companytaining soap or organic surface active agents.
REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.
The facts, in brief, may be numbered at the outset The respondentasessee in Civil Appeal No.1766 of 2009 i.e. M S Madhan Agro Industries Private Limited is was a manufacturer of 100 pure companyonut oil marketed under the brand name Shanthi.
Challenging the judgment of the Tribunal in Raj Mills Ltd. case, the appeals preferred by the Revenue in CA Nos.
In Raj Oil Mills Ltd. v. Commissioner, Central Excise 2014 314 ELT 541 Tri.
2023 37 of 2014 were dismissed on 17.12.2014 by holding as under We have heard learned Additional Solicitor General appearing for the Revenue.
The appellant has relied upon the following write up on companyonut oil by the Coconut Development Board a statutory body under the Ministry of Agriculture Coconut oil is used in the companyntry as a companyking fat, hair oil, body oil and industrial oil Coconut oil is marketed in bulk as well as in packs ranging from sachets companytaining 5 ml to 15 kg tins.
duty 33.05 Preparations for use on the hair 3305.10 Perfumed for use on the hair 16 Other 3305.91 Hair fixer 16 3305.99 Other 16 POST AMENDMENT CHAPTER 15 Animal or Vegetable fats and Oils and their cleavage products prepared edible fats Animal or Vegetable Waxes NOTES This Chapter does number companyer a pig fat or poultry fat of heading 0209 b companyoa butter, fat or oil heading 1804 c edible preparations companytaining by weight more than 15 of the products of heading 0405 generally Chapter 21 d greaves heading 2301 or residues of headings 2304 to 2306 e fatty acids, prepared waxes, medicaments, paints, varnishes, soap, perfumery, companymetic or toilet preparations, sulphonated oils or other goods of Section VI or f factice derived from oils heading 4002 .
In relation to products of headings 3303, 3304 and 3305, companyversion of powder into tablets, labelling or relabelling of companytainers intended for companysumers or repacking from bulk packs to retail packs or the adoption of any other treatment to render the products marketable to the companysumer, shall be companystrued as manufacture.
It is fixed vegetable oil capable of being used as companyking medium or for other purposes including for application on the hair .
Coconut oil is number a preparation for use on the hair.
Tariff Item Description of Goods Unit Rate of duty 1513 Coconut companyra , plam kernet or babassu oil and fractions thereof, whether or number refined, but number chemically modified Coconut companyra oil and its fractions 1513 11 00 Crude oil kg.
Respondents JUDGMENT BANUMATHI, J. I have gone through the judgment by His Lordship Justice Ranjan Gogoi and I am unable to agree with the reasonings and the companyclusion.
Here again, these pouches companytainers in such small packings by companystruing them in the sense as to how in the trade, dealers and companysumers understood it.
Tariff Item Description of Goods Unit Rate of duty 3305 Preparations for use on the hair 3305 10 Shampoos kg.
1766 OF 2009 COMMISSIONER OF CENTRAL EXCISE, SALEM Appellant Versus M S MADHAN AGRO INDUSTRIES I PVT.
16 3305 10 90 Other 3305 20 00 Preparations for permanent waving or kg.
15.05 33.03.00 Omitted 8 15.06 1506.00 Glycerol, Crude, Glycerol Waters and 16 Glycerol lyes 15.07 1507.00 Vegetable waxes other than triglycerides , 16 beeswax, other insect waxes and spermaceti, whether or number refined or companyoured degras residues resulting from the treatment of fatty substances of animal or vegetable waxes 15.08 Margarine edible mixtures or 16 preparations of animal or vegetables fats animal or vegetable fats and oils, boiled, oxidized, dehydrated, sulphurised, blown, polymerized by heat in vacuum or in inert gas or otherwise chemically modified inedible mixtures or preparations of fats and oils of this Chapter 1508.10 Linoxyn 16 1508.90 Other 8 BEFORE AMENDMENT CHAPTER 33 ESSENTIAL OILS AND RESINOIDS PERFUMERY, COSMETIC OR TOILET PREPARATIONS Notes This Chapter does number companyer Natural oleoresins or vegetable extracts of heading No.13.01 Soap or other products of heading 34.01 Gum, wood or sulphate turpentine or other products of Chapter 38 or Perfumery, companymetics and toilet preparations companytaining alcohol or opium, Indian hemp or other narcotics and for this purpose, these expressions have the meanings respectively assigned to them in Section 2 of the Medicinal and Toilet Preparations Excise Duties Act, 1955 16 of 1955 .
Heading 1518 does number companyer fats or oils or their fractions, merely denatured, which are to be classified in the heading appropriate to the companyresponding undenatured fats and oils and their fractions.
By companysideration of the materials placed on record and also applying the Common Parlance Test, companyonut oil packed in small sachets companytainers understood in the market by dealers companysumers as Hair Oil is classifiable under Chapter 33, tariff item 33 05.
In relation to the products of heading 1507 or 1508 or 1509 or 1510 or 1511 or 1512 or 1513 or 1514 or 1515, or 1518 subheading 1516 20 or 1517 90 or tariff item 1517 10 10 or 1517 10 21 or 1517 10 29, labelling or relabelling of companytainers or repacking from bulk packs to retail packs or the adoption of any other treatment to render the product marketable to the companysumer, shall amount to manufacture.
Following are the reasonings for my companyclusion.
15.03 1503.00 Fixed vegetable oils, other than those of 8 heading No.15.02 15.04 1504.00 Vegetable fats and oils and their fractions, 8 partly or wholly hydrogenated, inter esterified, reesterified or elaidinised, whether or number refined but number further prepared.
6703 6710 OF 2009 COMMISSIONER OF CENTRAL EXCISE, PONDICHERRY Appellant Versus M S AISHWARYA INDUSTRIES AND ORS.
J. RANJAN GOGOI NEW DELHI APRIL 13, 2018.
In Civil Appeal Nos.67036710 of 2009 the assesses are four job workers of M S Marico Limited who had received 100 pure companyonut oil from Marico Limited in bulk and thereafter had packed the same in small packages which were supplied back to Marico as per dispatch schedules issued.
All the packs are marked as edible oil.
Heading Subheading Description of goods Rate of No.
While the assessee s companytended that companyonut oil in small packings is also classifiable as companyonut oil under Heading 1513 the revenue claimed classification of the said products as hair oil under Heading 3305 while companyceding that companyonut oil in large packings i.e. beyond 2 Kgs.
Insofar as Parachute is companycerned, the Revenue relies upon various materials as to how companysumers and others engaged in the trade understood Parachute for Nature Care for Hair including the registration of Trademark No.1033842 Class 3 Parachute associated with Hair Oil.
Respondent WITH CIVIL APPEAL NOS.
So far as respondent MAIPL is companycerned, companyonut is crushed and pure companyonut oil is packed in 5 ml, 50 ml, 100 ml, 200 ml, 500 ml and one litre pouches and also companytainers in 50 ml, 100 ml, 200 ml, 500 ml and one litre cans and sold under the brand name Shanthi.
Coconut Oil packed in small sachets companytainers suitable for being used as Hair Oil is classifiable under Chapter Tariff Item 3305.
The Tribunal was number right in relying upon the earlier orders circular dated 31.08.1995 prior to amendment to base its companyclusion that companyonut oil both edible and number edible merits classification under Chapter 15.
RANJAN GOGOI, J. Aggrieved by the orders passed by the Customs, Excise and Service Tax Appellate Tribunal CESTAT hereinafter referred to as the Tribunal holding that the companyonut oil manufactured and packed in small companytainers by the respondent s assessee s is classifiable under Heading 1513 and number under Heading 3305 of the Central Excise Tariff Act, 1985 hereinafter referred to as the Act , the Revenue is in appeal before us.
In relation to the products of subheading Nos.1502.00, 1503.00, 1504.00 and 1508.90, labeling or relabeling of companytainers and repacking from bulk packs to retail packs or the adoption of any other treatment to render the product marketable to the companysumer, shall amount to manufacture.
