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2007 (4) TMI 10 - SC - Central ExciseClassification Department contended that appellant product (Vim dish wash bar) is classifiable under CSH 3401.20 and attract duty of 30% but as per assessee classifiable under 3405.40 Authority decided that the said product classifiable under CSH 3405.40.
Issues:
Classification of Vim Dish Wash Bar under Chapter sub-heading 3401.20 or 3405.40. Analysis: The Department sought to classify Vim Dish Wash Bar under Chapter sub-heading 3401.20 as an organic surface-active product for use as soap, attracting a duty rate of 30%. The Department relied on Heading 34.01, which covers soap and organic surface-active products in the form of bars. On the other hand, the assessee argued that Vim Dish Wash Bar should be classified under Chapter sub-heading 3405.40, pertaining to scouring pastes and powders, with a duty rate of 20%. The key question in this case was whether Chapter sub-heading 3401.20 applied to Vim Dish Wash Bar. The Supreme Court examined Heading No. 34.01, Chapter sub-headings 3401.10 and 3401.20, and Chapter Note No. 2, which clarified the classification criteria for soap and related products. The Court noted that soap and organic surface-active products are distinct, with Vim Dish Wash Bar not fitting the definition of soap or an organic surface-active product used as soap. The Court agreed with the Tribunal's view that Vim Dish Wash Bar is not a soap but rather a product used for scouring purposes. Therefore, Chapter sub-heading 3401.20, which pertains to organic surface-active products for use as soap, was deemed inapplicable. Additionally, Chapter Note 2 was found to have no relevance in this case. The Court also considered Rule 3(b) of the Rules of interpretation, noting that Vim Dish Wash Bar is primarily a mixture of detergent and abrasive powders, with chemical examiners confirming the predominant presence of abrasive powder in the product. Based on the above analysis, the Supreme Court found no merit in the civil appeals and dismissed them without any order as to costs.
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