TMI Blog2009 (9) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... of putting the individual products into kits, packaging and labeling of the kits has been held to amount to manufacture, the process of preparation of such kits is excisable and the kits are liable to excise duty under Section 3 of the Central Excise Act, 1944 – Crevat Credit is available. - - - AAR/CEx/04/2009 - Dated:- 18-9-2009 - Mr. Justice P.V. Reddi (Chairperson) and Mr. J.K. Batra (Member) Ruling No. AAR/CEx/04/2009 in Application No. AAR/CEx/02/2009 Present for the applicant : Mr. V. Lakshmi Kumaran, Advocate Mr. Puneet Bansal, Advocate Mr. Ashok Dhingra, Consultant Ms. Charanya L. Mr. Vinod Agarwal, VP(Finance) Mr. P.S. Krishnan, VP(Operations) Ms. Priya Ghai, Country Head Mr. Amos Chin, Div. Bus. Analyst Present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the applicant's factory for further labelling, packing etc., for being sold to consumers through the distribution network of the applicants. However, at the time of hearing, the applicant stated that the Category-I products intended for retail sale individually would be appropriately labeled before clearance from customs at the port itself and "no labellling whatsoever will be undertaken at the factory premises". The applicant confirmed this view vide the counsel's letter dated 4th August, 2009 and requested that "the original application filed by the applicant may be treated as modified to this extent". 4. The applicant has stated that the individual products intended for being packed into kits (Category-II products) would on import ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lassification of the individual products under the Custom Law and other related issues. The Authority has given its Ruling No AAR/Cus/03/2009 today. The classification of the four individual products has been determined to be as follows: Name of the Product Tariff item (1) Proactiv Solution Revitalizing Toner : 3304 91 90 (as a skin care product) (2) Proactiv Solution Renewing Cleanser : 3004 90 99 } (3) Proactiv Solution Repairing Lotion : 3004 90 99 }(as medicaments) (4) Proactiv Solution Refining Mask : 3004 90 99 } 8. In this background the questions raised by the applicant in its application relating to Central Excise are anal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Name of the Product Tariff item (1) Proactiv Solution Revitalizing Toner : 3304 91 90 (2) Proactiv Solution Renewing Cleanser : 3004 90 99 (3) Proactiv Solution Repairing Lotion : 3004 90 99 (4) Proactiv Solution Refining Mask : 3004 90 99 It may be noted that the chapter headings and tariff items in both the Tariff Acts are the same. Question 3. Whether the activities of labelling of the individual products, putting of the product literature into the kits, packing of the individual products into Proactiv Solution Kit-I and Proactiv Solution Kit-II, labelling including declaration of MRP on the kits at applicant's factory amounts to manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dual products when imported into India has been determined by this Authority in the ruling given today under the Customs Act. The details thereof have been set out above while discussing Question No. 2. The Proactiv Solution Kit-I comprising of all four products has three products which contain active ingredients for the treatment of acne. Applying the General Rules for Interpretation of the Central Excise Schedule, the classification of goods put up in sets for retail sale is to be done with reference to the material or component which gives them their essential character. In the present case the Proactiv Solution Kit-I is meant for treatment of the acne and 3 of the 4 products contain active ingredients for such treatment. Applying the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Central Excise Act, 1944 does not arise. Since Proactiv Solution Kit-I and Proactiv Solution Kit-II are medicaments, the provisions of the Drugs (Prices Control) Order, 1995 in so far as the requirements of labeling and display of maximum retail price are concerned become applicable. Clause 15 of the Drugs Prices Control Order casts an obligation on every manufacturer or importer or distributor of a non-scheduled formulation intended for sale to display on the label of the container of formulation and the minimum pack thereof offered for retail sale, the retail sale price of that formulation. Accordingly the provisions of Section 4A of the Central Excise Act, 1944 would get attracted and the said kits would be liable to be assessed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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