TMI Blog2004 (10) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... that their products as Cosmetic or Toilet preparations. The Tribunal has also analysed the matter in detail and held that Coconut oil is marketed in retail packs and re-packing from bulk into small packs does not result in a new product having a different name, use or character and also held that it does not result in manufacture. It is also held to continue to remain in Chapter Heading 15.03 so long as it is fixed vegetable oil and does not come under the purview of the Chapter 33 of the Act. In view of the finding recorded in M/s. Kothari Products Ltd. [ 2001 (10) TMI 146 - CEGAT, COURT NO. III, NEW DELHI] , we are of the considered opinion that the ruling of the Tribunal in Kothari Products Ltd. case clearly applies to the facts of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ratio of the Board's Circular nor the judgment of the Tribunal rendered in case of M/s. Kothari Products Ltd. (supra) and hence, this appeal. 2. Heard Shri G. Prabhakar Sastry, learned Advocate appearing for the appellants and Shri L. Narasimha Murthy, learned SDR appearing for the Revenue. 3. Ld. Counsel submitted that the item continues to be Coconut Oil and has not assumed the characteristic of Cosmetic or Toilet preparation and therefore Chapter Note 1(e) of Chapter 15 of Central Excise Tariff was not at all applicable to the facts of this case. He submitted that the judgment rendered in case of M/s. Kothari Products Ltd. (supra) applies to the facts of the case. 4. Ld. SDR files a Para-wise comments from the Revenue and re-iterate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al in Kothari Products Ltd. case clearly applies to the facts of the case :- "7. We have considered the submissions of both the sides. It is not in dispute that the coconut oil in bulk falls under Heading 15.03 of the Central Excise Tariff. Coconut in bulk is also usable as hair oil and it is not that it becomes usable as hair oil only after it is re-packed into small containers. This has also been recognised by the Central Board of Excise Customs in Circular No. 145/56/95, dated 31-8-1995 wherein it was mentioned that coconut oil has multiple uses, as besides cosmetics and toilet preparation, for making lubricating greases, synthetic detergent, laundering and cleaning preparations as a source of fatty acid and also as an oil for applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Yogasharam, supra, relied upon by the learned Consultant, it has been held by the Bombay High Court that the mode in which a person may choose to advertise his commodity cannot be decisive in determining its real nature. Similar views were expressed by Madras High Court in TSR Company Case, supra. The Bombay High Court again in Leucoplast (I) Pvt. Ltd. v. U.O.I. [1985 (20) E.L.T. 70 (Bom.), observed as under : "However, it may be pointed out that for the purposes of classification for levy, the advertisements are of no value or help. Advertisements, are published by the manufacturer of a product in order to attract consumers and have nothing to do with the classification of the same product for levying of duty. This Court dealing with suc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On the other hand, coconut oil under consideration seems to be a fixed vegetable oil as per Note 3 of the Chapter 15 which defines "fixed vegetable oils" as oils which cannot be easily distilled without decomposition, which are not volatile and which cannot be carried off by superheated steam (which decomposes and saponifies them). Further, under general description at p 101 of HSN, it has been stated that Chapter 15 covers, inter alia, animal or vegetable fats and oils, whether crude, purified or refined or treated in certain ways (e.g. boiled, sulphurised or hydrogenated). Also Heading 15.13 in HSN covers coconut oil and its fraction whether crude or refined. Though it is true that the headings, in HSN are not aligned with CETA, 1985 the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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