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of <h1>Tribunal rules in favor of Johnson Buds classification under Chapter Heading 5601.00</h1> The Tribunal upheld the classification of the product 'Johnson Buds' under Chapter Heading No. 5601.00, emphasizing the essential character derived from ... Bud - Johnson Bud - Classification of Issues:Classification of the product 'Johnson Buds' under Central Excise Tariff Act.Detailed Analysis:The appeal revolves around the classification of the product 'Johnson Buds' manufactured by M/s. Johnson & Johnson Ltd. The Department asserts the classification under Chapter Sub-Heading 3926.90, contrary to the previous classification under 5601.10. The Adjudicating Authority emphasizes that both the wadding of cotton and P.P. Sticks determine the essential character of the product, leading to its classification under Heading 3926.20 based on the material that predominates by weight, which is polypropylene in this case.The assessee argues that the product is primarily used for cleaning the outer portion of the ear but is also utilized for the inside. The cotton used is of IP Grade, meeting Indian Pharmacopoeia Standards. The Department's claim that the weight of PP Sticks predominates for classification under 3926.90 is refuted, citing the end-use and a Supreme Court judgment (M/s. Geep Flashlight Industries v. Union of India) emphasizing trade understanding for classification.The Commissioner (Appeals) notes that the product's essential character is dependent on the cotton swabs, leading to classification under Sub-Heading 5601.10. Referring to Rule 3(c) of the General Rules of Interpretation, the product is classified under 5601.10 as it occurs later than 3926.90. The Tribunal, considering the essential character derived from wadding and the functional use of the product, rules in favor of classification under Chapter Heading No. 5601.00, setting aside the Order-in-Original.The Department contends that the product's essential character is determined by both the wadding and the PP Stick equally, justifying classification under 3926.90. However, the Tribunal, after thorough consideration and referencing the Supreme Court's interpretation of articles of plastics, dismisses the appeal, affirming the classification under 5601.00 due to the product being known, advertised, sold, and offered as an ear bud, not as an article of plastic.In conclusion, the Tribunal dismisses the Revenue's appeal, upholding the classification of the product 'Johnson Buds' under Chapter Heading No. 5601.00, emphasizing the trade understanding and the essential character derived from the wadding of cotton.
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