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of <h1>Tribunal grants waiver on duties for coconut oil classification appeal.</h1> The Tribunal granted the applicants' request for a waiver of pre-deposit of duties, interest, and penalties in the case concerning the classification of ... Waiver of pre-deposit - classification of coconut oil packed and sold in the packages of the quantity of 200 ml and below – whether classifiable under Chapter 33 of the Central Excise Tariff as preparation for use on hair or under Chapter 15 of the Central Excise Tariff which covers edible oil – Held that:- After 28-2-2005 coconut oil packed and sold in the packing of the capacity upto 500 ml are classifiable under Chapter 15 of the Central Excise Tariff – pre-deposit waived – Against revenue Issues Involved:Classification of coconut oil packed in small packages under Central Excise Tariff - Application for waiver of pre-deposit of duties, interest, and penalties.Analysis:The case involved multiple applications for waiver of pre-deposit of duties, interest, and penalties concerning the classification of coconut oil packed in small packages. The applicants, M/s. Raj Oil Mills Ltd. and M/s. Indian Vegoils & Chemicals Co. Pvt. Ltd., sought a waiver of pre-deposit of significant amounts of duty, interest, and penalty. The core issue revolved around the classification of coconut oil packed in packages of 200 ml and below. The Revenue contended that such coconut oil falls under Chapter 33 of the Central Excise Tariff as a preparation for use on hair, while the applicants argued for classification under Chapter 15 covering edible oil.The Revenue based its argument on Section Note 2 to Section 6 of the Central Excise Tariff and Chapter Note 3 to Chapter 33, asserting that coconut oil in small packings is commonly used as hair oil. Additionally, the Revenue cited a Board's Circular highlighting customer usage patterns of smaller packs for hair oil. In contrast, the applicants relied on a Tribunal decision in the case of Aishwaria Industries, where coconut oil in packages up to 500 ml was classified under Chapter 15 post-28-2-2005. The Tribunal had set aside a similar demand, a decision unchallenged by the Supreme Court.Moreover, the applicants referenced a Kerala High Court decision in the case of Merico Industries Ltd., which followed the Tribunal's ruling in Aishwaria Industries. The High Court directed that the party's rights would align with the Tribunal's decision pending the department's appeal in the Supreme Court. Considering these precedents, the Tribunal found a strong prima facie case in favor of the applicants, leading to the waiver of pre-deposit and a stay on recovery during the appeal process. Given the substantial revenue involved, the appeals were scheduled for final hearing on a specific date.This comprehensive analysis highlights the legal intricacies surrounding the classification of coconut oil in small packages under the Central Excise Tariff, emphasizing the Tribunal's reliance on precedent cases and statutory provisions to arrive at a favorable decision for the applicants.
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