COMMISSIONER OF CENTRAL EXCISE, SALEM versus M/S MADHAN AGRO INDUSTRIES (INDIA) PRIVATE LTD.

COMMISSIONER OF CENTRAL EXCISE, SALEM versus M/S MADHAN AGRO INDUSTRIES (INDIA) PRIVATE LTD.

Because Heading 1513 in the First Schedule corresponds with HSN Heading 15.13 and the coconut oil in the cases was marketed and packaged as edible oil complying with food and packaging standards, it must be classifiable under Heading 1513 unless the packaging satisfies all requirements of Chapter Note 3 and the Explanatory/General Notes in HSN (labels/literature or packaging of a kind sold by retail for cosmetic/hair use), which was not shown; therefore the goods are edible oil and not hair oil.

Parties
Appellant: Commissioner of Central Excise, Salem; Respondent: M/s Madhan Agro Industries (India) Private Ltd.; Respondent: M/s Marico Ltd.
Jurisdiction
India
Judgment Date
18 December 2024
Procedural Posture
Civil Appeal / Final Judgment (appeal Dismissed)
Outcome
Appeals dismissed
Legal Topics
Classification of Goods, Harmonized System of Nomenclature (hsn) and Explanatory Notes, Common Parlance Test, Packaging and Retail Sale, Burden of Proof
Taxation Customs and Excise Statutory Interpretation Classification of Goods Harmonized System of Nomenclature (hsn) and Explanatory Notes Common Parlance Test Packaging and Retail Sale Burden of Proof

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Parties

Commissioner of Central Excise, Salem

Appellant

M/s Madhan Agro Industries (India) Private Ltd.

Respondent

M/s Marico Ltd.

Respondent

Procedural Posture

Civil Appeal / Final Judgment (appeal Dismissed)

Legal Issues

  1. 1 Whether pure coconut oil packaged and sold in small quantities (5 ml to 2 litres) is classifiable as 'Edible oil' under Heading 1513 (Section III, Chapter 15) or as 'Hair oil' under Heading 3305 (Section VI, Chapter 33) of the First Schedule to the Central Excise Tariff Act, 1985
  2. 2 Whether the Harmonized System of Nomenclature (HSN) and its Explanatory/General Notes apply in interpreting the corresponding headings in the First Schedule
  3. 3 Whether the 'common parlance test' or packaging size alone can determine classification

Ratio Decidendi

Because Heading 1513 in the First Schedule corresponds with HSN Heading 15.13 and the coconut oil in the cases was marketed and packaged as edible oil complying with food and packaging standards, it must be classifiable under Heading 1513 unless the packaging satisfies all requirements of Chapter Note 3 and the Explanatory/General Notes in HSN (labels/literature or packaging of a kind sold by retail for cosmetic/hair use), which was not shown; therefore the goods are edible oil and not hair oil.

Court Disposition

Appeals dismissed

Orders

  • Appeals dismissed
  • Parties shall bear their own costs