LexCOMMISSIONER OF CENTRAL EXCISE versus MADHAN AGRO INDUSTRIES (I) PVT. LTD.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
A B C D E F G H 387 COMMISSIONER OF CENTRAL EXCISE v. MADHAN AGRO INDUSTRIES (I) PVT. LTD. (Civil Appeal No. 1766 of 2009) APRIL 13, 2018 [RANJAN GOGOI AND R. BANUMATHI, JJ.] Central Excise Tariff Act, 1985 – Classification – Heading 1513 or 3305 – Coconut oil manufactured and packed in small containers by assessee – Whether classifiable under Heading 1513 or under Heading 3305 – Held: (Per Ranjan Gogoi, J.) In the instant case, “Coconut oil” packed in small packages/containers does not cease to be “Coconut oil” and become “Hair oil” though such “coconut oil” may be capable of being used for both purposes and therefore, is clearly covered by Chapter Heading 1513 and not by Chapter Heading 3305 – (Per R. Banumathi, J.) Coconut Oil packed in small container suitable for being used as Hair oil is classifiable under Chapter Heading 3305 – In view of difference of opinion, Registry directed to place these appeals before the Chief Justice of India for appropriate orders. Directing the Registry to place the appeals before the Chief Justice of India in view of difference of opinion, by the Court HELD: Per Ranjan Gogoi, J.– 1.1 Under the pre-amended provisions of the Act, coconut oil was not covered by any specific Heading and had been classified under Heading 15.03 which dealt with fixed vegetable oils, other than those of heading No.15.02. On the other hand prior to the amendment Heading 33.05 dealt with preparations for use on the hair. After coming into force of the amendment, Headings 1513 and 3305 in Chapters 15 and 33 virtually incorporated the contents of the Headings and sub- headings as contained in the Harmonised System of Nomenclature (HSN). The position following the amendment of the Tariff Act is that a specific Heading for coconut oil has been introduced in the Tariff Act. So far as “preparation for use on the hair” is concerned, the sub-headings have made various such items more specific. [2018] 6 S.C.R. 387 387 A B C D E F G H 388 SUPREME COURT REPORTS [2018] 6 S.C.R. Noticeably coconut oil as a preparation for use as hair oil is not included in Heading 3305 or any of its Sub-Headings. [Para 22, 23 and 26] [412-G-H; 413-A; 414-B-D] Commissioner of Customs and Central Excise, Goa v. Phil Corporation Limited (2008) 17 SCC 569 : [2008] 2 SCR 531; O.K. Play (India) Ltd. v. Commissioner of Central Excise, Delhi-III, Gurgaon (2005) 2 SCC 460 : [2005] 1 SCR 1069 ; O.K. Play (India) Ltd. v. Commissioner of Central Excise, Delhi-III, Gurgaon (2005) 2 SCC 460 : [2005] 1 SCR 1069 ; Central Excise, Goa v. Phil Corporation Limited (2008) 17 SCC 569 : [2008] 2 SCR 531 – relied on. Indo-International Industries v. Commissioner of Sales Tax, U.P. 1981 (8) E.L.T. 325 (S.C.) ; Asian Paints India Ltd. v. Collector of Central Excise 1988 (35) E.L.T. 3 (S.C.) ; Shree Baidyanath Ayurved Bhavan Ltd. v. Collector of Central Excise, Nagpur (1996) 9 SCC 402 ; Alpine Industries v. Collector of Central Excise, New Delhi (2003) 3 SCC 111 : [2003] 1 SCR 313 – distinguished. Rajasthan Oil Mills v. Commissioner of Central Excise 2014 (314) ELT 541 (Tribunal); Collector of Central Excise, Shillong v. Wood Craft Products Ltd. (1995) 3 SCC 454 : [1995] 2 SCR 797 ; Commissioner of Customs Camlin Limited v. Commissioner of Central Excise, Mumbai (2008) 9 SCC 82 : [2008] 12 SCR 1223 ; V.M. Salgaocar & Bros. Pvt. Ltd. v. Commissioner of Income Tax (2000) 5 SCC 373 : [2000] 2 SCR 1169 – referred to. 1.2 Chapter Note 3 of Chapter 33 makes it clear that Heading 3305, inter alia, would apply to products “which are suitable for use as goods mentioned in the Heading and if they are put up in packings of a kind sold by retail for such use”. Heading 3305 deals with “preparations for use on the hair”. In the instant case, in the packings of coconut oil, the inscription “edible oil” is mentioned. There is no representation, declaration or advertisement in the packings that the same can be or is meant A B C D E F G H 389 to be used as a hair oil. In order to classify a product under tariff Item No.3305 of the Act, the requirements of Clauses (a) and (b) of the Explanatory Note to Chapter Note 3 of Harmonised System of Nomenclature (HSN) would be required to be satisfied and the goods/packages must be put up with labels/literatures and other indications that they are meant for use as perfumery, cosmetic and toilet preparations or the goods must be put up in a form clearly specialised for such use as for example nail varnish must be put up in small
Excerpt shown. Read the full judgment & AI analysis in Lexace.