Coconut oil classification turns on intended use and packaging indicia, with mere repacking insufficient to shift tariff heading.

Coconut oil packed in sachets, pouches and jars remains classifiable as a fixed vegetable oil under Chapter 15 unless its composition, labels, literature or other indicia show preparation for cosmetic or toilet use under Chapter 33. The note applies the tariff entries and chapter notes, and reiterates that mere repacking into small containers does not create a new product, change its character, or by itself amount to manufacture. It also reflects the view that board circulars and earlier tribunal rulings support Chapter 15 classification where the goods are not shown to contain additives or packaging features attracting Chapter 33.

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Issues: Whether coconut oil packed in sachets, pouches and jars under the brand names used in the appeal was classifiable under Chapter 33 as a cosmetic or toilet preparation, or continued to remain classifiable as a fixed vegetable oil under Chapter 15 of the Central Excise Tariff Act, 1985.

Analysis: The classification turned on the tariff entries and the chapter notes governing Chapter 15 and Chapter 33. The product was found to be coconut oil in retail packs, without labels, literature or other indications showing it to be meant for use as a cosmetic or toilet preparation. The Tribunal relied on the settled principle that mere repacking from bulk into small containers does not bring about a new product with a different name, use or character, nor does it by itself amount to manufacture. It also followed the Board's circular and the earlier tribunal ruling, which clarified that coconut oil continues to merit classification as a fixed vegetable oil so long as it satisfies the criteria of Chapter 15 and is not shown to have additives or packaging features that attract Chapter 33.

Conclusion: The product was held to remain classifiable under Chapter 15 and not under Chapter 33; the demand and penalty founded on the contrary classification could not survive.

Final Conclusion: The appeal succeeded and the impugned classification-based demand was set aside.

Ratio Decidendi: Coconut oil remains classifiable as a fixed vegetable oil under Chapter 15 unless the goods are shown, by their composition or by labels, literature or other indicia, to be prepared for cosmetic or toilet use under Chapter 33; mere repacking into small containers does not change its character or amount to manufacture.

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