Customs Excise and Service Tax Appellate Tribunal (CESTAT), Chennai held that Axe Brand Universal Oil is classifiable under Chapter 30 of Excise Act, attracts 12% duty.
The respondents M/s. SMA Trading Company imported “Axe Brand Universal Oil (3ml, 5ml, 10 ml, 25ml and 56 ml)” vide Bill of Entry dated 1.12.2016 and self-assessed the same by classifying the goods under CTH 30049011 adopting RSP based CVD assessment only for 28 ml and 56 ml. On examination, it was found that 12 pieces of individual packs of 3ml, 5ml, 10ml, 28ml and 56ml were packed in one bundle and it was mentioned on the label that these are to be sold in bundles of 12 pieces only.
The department was of the view that the goods are to be classified under Chapter 33 and that all goods above 10ml should be assessed under section 4A of Central Excise Act, 1944. After due process of law, the original authority classified the goods under CTH 33079090. An appeal was filed by the importer before the Commissioner of Customs (Appeals).
The Commissioner (Appeals) set aside the classification, upheld the classification adopted by the importer and classified the goods under CTH 30049011. The department filed this appeal challenging only the issue of classification contending that the goods are to be classified under Chapter 33.
On behalf of the appellant, A. Rajaraman appeared and argued the matter. He submitted that the Commissioner has erred in interpreting the applicability of Chapter 33 stating that it is meant for cosmetics which is a wrong interpretation since the Heading of Chapter 33 reads as “Essential Oils and Resinoids, Perfumery Cosmetic or Toilet Preparation”. Hence the goods in question would fall under Chapter 33.
K. Mohana Murali appeared for the respondent. He argued that similar products such as Vicks, Amrutanjan, Tiger liquid balm have been held to have therapeutic and prophylactic properties and are to be classified under Chapter 30.
The Bench consisting of Sulekha Beevi C S, Judicial Member and Sanjiv Srivastava, Technical Member held that “Similar goods in the nature of Amrutanjan, Vicks, Tiger Balm have been held to be classifiable under Chapter 30 as seen from the decisions relied by the learned counsel for the respondent.”
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