Tariff classification of sodium lauryl sulphate turned on its essential character as a surface active agent, not drug use.

Sodium lauryl sulphate was classified for excise purposes by its essential character as a surface active agent, because tariff classification depends on the most appropriate specific entry and not on the assessee's claimed end use in drug formulations. Item 68, being residuary, applied only where no prior heading fit, and Item 15AA specifically covered surface active preparations. The fact that the product met pharmacopoeial standards or was used in patent preparations did not alter its classification, so the claimed exemption for drugs was not available.

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Issues: Whether sodium lauryl sulphate, though used in drug formulations and meeting Indian Pharmacopoeia standards, was classifiable as a drug under Item 68 of the Central Excise Tariff and eligible for exemption under Notification No. 55/75-C.E., or was correctly classifiable under Item 15AA as a surface active agent.

Analysis: The product had surface-active properties and was in fact used for that functional character in patent preparations. Classification for excise purposes had to be made by reference to the most appropriate tariff entry, not by the end use claimed by the assessee. The residuary Item 68 could apply only where no preceding heading fit, whereas Item 15AA specifically covered surface active preparations. The fact that the product could be used in drug formulations did not displace its essential character as a surface active agent, and the exemption notification could not be invoked where the goods were properly covered by a more specific tariff item.

Conclusion: Sodium lauryl sulphate was correctly classifiable under Item 15AA of the Central Excise Tariff and not under Item 68; the claimed drug exemption was not available.

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