Heena paste exemption upheld where clove oil served only as a liquid medium and did not alter the product's character.

Heena powder and heena paste in cone remained eligible for exemption under Sl. No. 134 of Notification No. 12/2013-CE where clove oil was used only as a liquid medium to convert the powder into paste and to preserve the product for later use. The exemption covered heena powder or paste not mixed with any other ingredient, and the Board's clarification supported coverage where the added liquid served only as a medium rather than as an active ingredient. Because no ingredient was added to alter the character of the product, the denial of exemption was unsustainable and the benefit was allowed.

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Issues: Whether heena powder and heena paste in cone, containing clove oil as a liquid medium, were entitled to exemption under Sl. No. 134 of Notification No. 12/2013-CE dated 01.03.2013.

Analysis: The exemption entry covered heena powder or paste not mixed with any other ingredient and falling under Chapter 33. The Board's clarification on the corresponding exemption entry stated that the benefit would extend to heena powder mixed with a liquid, where the liquid only serves as a medium to convert the powder into paste, and would exclude products such as heena dye or other cosmetic products. On the facts found, clove oil was used only as a liquid medium to make the powder into paste and to preserve and market it for later use. No active ingredient was added to alter the character of the product.

Conclusion: The appellant was entitled to the exemption, and the denial of benefit was unsustainable.

Final Conclusion: The exemption could not be denied merely because a liquid medium was used to convert heena powder into paste, where no other active ingredient was added and the product remained within the scope of the notification.

Ratio Decidendi: A product remains eligible for an exemption entry for powder or paste not mixed with any other ingredient when the only addition is a liquid medium used to convert the powder into paste and no active ingredient is added to change its character.

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