Circular No. 166/77/95-Central Excise
dated 29/12/95
F.No.103/1/95-CX.3
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs, New Delhi
Subject : CE – Classification of Coconut Oil packed in small containers – Clarification regarding.
Your kind attention is invited to Board”s Circular No. 145/56/95-CX dated 31st August, 1995 regarding correct classification of coconut oil packed in small containers as to whether the same is classifiable as a fixed vegetable oil under Chapter 15 or as a cosmetic preparation under Central Excise Tariff Act, 1985.
2. In para 9 of the said Circular it has been, inter alia, clarified that if the containers bear labels/literature etc. indicating that it is meant for application of hair, as specified under Note 2 of Chapter 33 and/ or if the coconut oil has additives (other than BHA) or has undergone processes which make it a “preparation for use on hair” as mentioned in Chapter Note 6 of Chapter Note 6 of Chapter 33, then the coconut oil may merit classification under Chapter 33.
3. It has been represented that the above para has created doubts, as to whether addition of any additive other than BHA to coconut oil makes it a “preparation for use on the hair”. It has also been submitted that the last sentence of para 9 of the circular, therefore need amplification so as to include other permitted anti-oxidants and that instead of confining it to only BHA, all anti-oxidants permitted vide Rule 59 of the Prevention of Food Adulteration Rules, 1995 may be allowed as additives without making the coconut oil a “preparation for use on hair.”
4. The matter has since been examined. It is further clarified that, the use of anti-oxidants as specified under Rules 59 of the Prevention of Food Adulteration Rule, 1955 will not alter the classification it they are meant only for preventing the rancidity of the oil.
