Classification of Jac Olivol Body Oil: HSN 3004 or HSN 3304? No Ruling by AAAR

In re Indranil Chatterjee (GST AAAR West Bengal)

In a recent case before the Authority for Advance Ruling (AAAR) West Bengal, a contentious issue arose regarding the classification of ‘Jac Olivol Body Oil’ under the GST Tariff. The appellant, Indranil Chatterjee, sought clarification on whether the product falls under HSN 3004 or HSN 3304 of the GST Tariff.

Background: The dispute centered on whether ‘Jac Olivol Body Oil’ should be classified as a medicament or a cosmetic product. This classification holds significant implications for taxation under the GST Act.

Divergence of Opinion: The AAAR encountered a deadlock in reaching a conclusive decision due to a difference in opinion between its two members, Mr. Navneet Goel and Mr. Devi Prasad Karanam.

Opinion of Mr. Navneet Goel: Mr. Goel emphasized the application of the “Common Parlance test” and highlighted the product’s labeling and common usage as indicative of its classification as a cosmetic under HSN 3304. He underscored the importance of consumer perception in determining the product’s classification.

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