Case Law Details

Case Name : M/s Keshwanand Chemicals (P) Ltd. Vs CCE Indore (CESTAT Delhi)
Appeal Number : Appeal No. C/294-296/2011- [DB]
Date of Judgement/Order : 01/12/2017
Related Assessment Year :
Courts : All CESTAT (755) CESTAT Delhi (266)

M/s Keshwanand Chemicals (P) Ltd. Vs CCE Indore (CESTAT Delhi)

1. These appeals are directed against the impugned orders dated 01/03/2011 and 08/04/2011 passed by the Commissioner (Appeals) Custom, Central Excise and Service Tax, Indore.

2. Classification of imported goods declared as “Under Pads” is the subject matter of the present dispute. The appellant claimed the classification under CTH 48184090 and the department sought to classify the said goods under CTH 48184010. The rival classifications of product under the Tariff are as under:-

481840 -Sanitary towels and tampons, napkins and napkin liners for babies and similar sanitary articles:
48184010 —Baby and clinical diapers Kg. 16%
48184090 —Others….. Kg. 16%

3. In respect of baby and clinical diapers falling under Chapter Heading 48184010, the additional duty of Customs is 10%; whereas such product, if classified under Chapter 48184090, the same is exempted from CVD in terms of Notification No. 10/2010- CE-dated 27/02/2010.

4. The Ld. Advocate appearing for the appellant submits that the goods imported by the appellant, will fall under Sub-Heading 48184090 for the reason that those goods cannot be considered as “baby and clinical diapers” in as much as the product is not fastened around the body and the same is used on the bed/chair for absorbing the body waste. Thus, she submits that the appellant should be eligible for the CVD exemption provided under the Notification No. 10/2010 dated 27/02/2010. She also produced the product literature and the sample of the goods imported by them.

5. On the other hand, the Ld. DR appearing for the Revenue reiterates the findings recorded in the impugned order and further submits that since the imported goods have absorbent quality the same should be rightly classifiable under Chapter 48184010 under the heading baby and clinical diapers’.

6. Heard both sides and perused the records.

7. On going through the product literature and the sample piece of the goods produced by the appellant, we note that the product is essentially having the characteristics of the ‘disposable under pads‘ which are technically known as disposable bed pads/ bed sheets. Diapers are commonly understood as thick soft paper or cloth that is fastened around a baby’s bottom/ between legs to absorb urine/ solid waste. Since, the goods in question were not made for fastening into the body, the same in our considered opinion should not be termed as baby and clinical diapers and should more appropriately fall under Chapter Sub-Heading of 48184090 which provides for other sanitary articles.

8. In view of above, we do not find any merits in the impugned orders with regard to the classification of the imported goods. Therefore, after setting aside the impugned orders, we allow the appeals in favour of the appellants.

[Order dictated and pronounced in the open court]

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