| Date: |
12-10-2015
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| Notification No: |
Central Excise Circular No. 1007/14/2015-CX
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| Issuing Authority: |
Central Excise
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| Type: |
Circular
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| File No: |
F.No. 103/01/2015-CX-3 |
| Subject: |
Withdrawal of Order under 37B of Central Excise Act, 1944 on classification of Coconut Oil packed in small containers
|
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF EXCISE AND CUSTOMS
*****
CIRCULAR NO. 1007/14/2015-CX
NEW DELHI, 12th October 2015
To
Principal Chief Commissioner/Chief Commissioner of Central Excise, Customs and
Service Tax (All)
Principal Commissioner of Central Excise, Customs and Service Tax (holding
charge of Chief Commissioner) (All)
Web Master, CBEC
Madam/Sir
Subject: – Withdrawal of Order under 37B of Central Excise Act, 1944 on
classification of Coconut Oil packed in small containers-reg.
Kind attention is invited to
Circular No. 890/10/2009 dated 3.6.2009 by which
Board (CBEC) issued Order under Section 37B on classification of Coconut Oil
packed in containers of the sizes up to 200ml. References have been received on
the subject from field formations on need to review the Circular due to judicial
pronouncements on the subject. It was directed in the said Circular that coconut
oil packed in small container of sizes upto 200 ml shall be classified under
Central Excise Tariff heading 3305.
- The issue has been examined and it has been noted that there are decisions on
the issue by Hon’ble Tribunals/Courts wherein it has been held that just because
the retail packs of Coconut Oil are in sizes of 200 ml or less, the same
cannot be presumed to be meant for use as Hair oil and would not be
classifiable under heading no. 3305. Following judgments are relevant in
this regard: -
- 3.1 In case of Raj Oil Mills Ltd. vs. Commissioner, Central Excise [2014 (314)
ELT 541, Hon’ble Tribunal held that edible Coconut Oil in retail packing of
200ml or less is classifiable under Chapter 15 covering Animal or Vegetable Fats
and Oils and not under Chapter 33 covering Cosmetics and Toilet Preparation.
Civil Appeal filed by the department against the order in the Hon’ble Supreme
Court has been dismissed on merits.
3.2 In the case of Capital Technologies Ltd. & Ors vs CCE, Tirupati reported in
[2015(321) ELT 479, Hon’ble Tribunal examined the issue of classification of
Coconut Oil packed in retail packs of 50 ml, 100 ml, 200 ml and 500 ml. After
discussing the amendments to Chapter note 3 to Chapter 33 and Section Note 2 to
Section VI w.e.f 28.02.2005, Tribunal held that the edible coconut oil packed in
retail packs ibid would be classifiable as Coconut oil under heading no. 1513
and not as Hair oil under heading no. 3305. Civil Appeal filed by the department
against the order has been dismissed by the Hon’ble Supreme Court on facts only.
- In view of the judgments of the Hon’ble Courts, the Central Board of Excise &
Customs withdraws
Circular No. 890/10/2009-CX dated June 03, 2009. The issue of
classification may be decided by the field taking into consideration the facts
of the case read with the judicial pronouncements.
- Difficulty, if any, in implementing the circular should be brought to the
notice of the Board. Hindi version would follow.
F.No. 103/01/2015-CX-3
(Shankar Prasad Sarma)
Under Secretary (CX.3)
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