COMMISSIONER OF CENTRAL EXCISE versus MADHAN AGRO INDUSTRIES (I) PVT. LTD.

COMMISSIONER OF CENTRAL EXCISE versus MADHAN AGRO INDUSTRIES (I) PVT. LTD.

Per Ranjan Gogoi, J.: Coconut oil packed in small packages does not cease to be coconut oil and become hair oil, even if it is capable of both uses; thus, it is classifiable under Heading 1513 and not 3305 unless packaging or label indicates it is for use as hair oil. Per R. Banumathi, J.: Coconut oil in small packs...

Source-derived case information.

Parties
Appellant: Commissioner of Central Excise; Respondent: Madhan Agro Industries (I) Pvt. Ltd.
Jurisdiction
India
Judgment Date
13 April 2018
Procedural Posture
Civil Appeal / Post CESTAT Appeal; Two Judge Supreme Court Bench, Difference of Opinion, Referred to Chief Justice of India
Outcome
Difference of opinion. Appeals to be placed before Chief Justice of India for appropriate orders.
Legal Topics
Classification of Coconut Oil, Interpretation of Central Excise Tariff Act
Central Excise Tariff Classification Classification of Coconut Oil Interpretation of Central Excise Tariff Act

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Parties

Commissioner of Central Excise

Appellant

Madhan Agro Industries (I) Pvt. Ltd.

Respondent

Procedural Posture

Civil Appeal / Post CESTAT Appeal; Two Judge Supreme Court Bench, Difference of Opinion, Referred to Chief Justice of India

Legal Issues

  1. 1 Whether coconut oil packed in small containers is classifiable under Heading 1513 or 3305 of the Central Excise Tariff Act, 1985

Ratio Decidendi

Per Ranjan Gogoi, J.: Coconut oil packed in small packages does not cease to be coconut oil and become hair oil, even if it is capable of both uses; thus, it is classifiable under Heading 1513 and not 3305 unless packaging or label indicates it is for use as hair oil. Per R. Banumathi, J.: Coconut oil in small packs suitable for use as hair oil is classifiable under Heading 3305 based on suitability for that use and retail packaging; if items equally merit classification, heading occurring last (i.e., 3305) applies. Difference of opinion; matter referred to Chief Justice.

Court Disposition

Difference of opinion. Appeals to be placed before Chief Justice of India for appropriate orders.

Orders

  • Registry directed to place the appeals before the Hon’ble Chief Justice of India for appropriate orders in view of difference of opinion between the two judges.