SC JUDGESC SPLIT OVER CLASSIFICATION OF" COCONUT OIL" SACHETS USED AS "HAIR OIL"

SC JUDGESC SPLIT OVER CLASSIFICATION OF" COCONUT OIL" SACHETS USED AS "HAIR OIL"

SC delivers split verdict on classification of ‘Coconut Oil’ packed in small sachets / containers, as “Coconut Oil” under Chapter Heading 1513 or as “Hair Oil” under Chapter Heading 3305 of Central Excise Tariff Act; Justice Gogoi holds that product is clearly covered by Chapter Heading 1513, while observing that ‘Coconut Oil’ packed in small packages / containers does not cease to be “Coconut Oil” and become “Hair Oil” though it may be capable of being used for both purposes;

States, question of classification should be resolved “not on the basis of the perception of the consumer or the customer but on the basis of the headings and subheadings and on an interpretation of the provisions of the relevant Chapter Notes, if required”; In this regard, Justice Gogoi refers to CBEC Circular No. 145/56/95-CX to observe, “Only if the containers bear labels/literature indicating that it is meant for use on the hair that the coconut oil in dispute may merit classification under Chapter 33”;

On other hand, Justice Banumathi records dissenting view, holds that ‘Coconut Oil’ packed in small sachets / containers, as they are suitable for use on hair, is classifiable under Chapter Heading 3305 and not Chapter 1513; ;

In view of difference of opinion, Bench places the appeals before CJI for appropriate orders