Hindustan Unilever’s Rexona & Lux Soap is covered under Chapter 34 as TFM content is less than 60%: CESTAT [Read Order]

Hindustan Unilever’s Rexona & Lux Soap is covered under Chapter 34 as TFM content is less than 60%: CESTAT [Read Order]

Hindustan Unilever - Rexona & Lux Soap - CESTAT - HUL - GST - Hindustan Unilever - Taxscan

The Custom, Excise, Service Tax Appellate Tribunal (CESTAT) held that Hindustan Unilever product named Rexona and Lux soaps are covered under Chapter 34 as the Totally Fatty Matter (TFM) content was less than 60%.

In the case of M/s, Hindustan Unilever Ltd. vs. Commissioner of Central Excise held that any soap whether it is toilet soap or non-toilet soap continues to fall within chapter 34, because of the fact that Totally Fatty Matter (TFM) content is less than 60% and the Rexona and Lux soaps are covered under the ambit of Chapter 34.

The petitioner namely M/s Hindustan Unilever Ltd. is engaged in the manufacturing of toilet soaps under various brands and was clearing the same claiming the classification under S. H. No. 3401.10 of the Comprehensive Economic and Trade (CETA). Specifically, Rexona and Lux are primarily used for bathing and so it consists have less than 60% of the Totally Fatty Matter (TFM).

The issue raised in this case was whether each soap manufactured in the local or Khadi Industry with a low Totally Fatty Matter (TFM) content would be considered as bathing preparation as they are expensive or not?

The Custom, Excise, Service Tax Appellate Tribunal (CESTAT) consisting of a Judicial Member, P.K. Choudhary, and a Technical Member, P. Anjani Kumar held that any soap whether it is toilet soap or non-toilet soap continues to fall within chapter 34, because of the fact that Totally Fatty Matter (TFM) content is less than 60% and the Rexona and Lux soaps are covered under the ambit of Chapter 34. Therefore, Hindustan Unilever’s product named Rexona and Lux soap is covered under Chapter 34 as the Totally Fatty Matter (TFM) content was less than 60%.

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