Synthetic detergent classification supported exemption for repacked retail goods cleared to Khadi and Village Industries.

Repacked retail products made from bulk packs, with added fragrance and colours, were treated as synthetic detergents because the chemical examiner found organic surface active agents, fragrances and additives, and the goods matched the HSN explanatory notes for Chapter sub-heading 3402 90. On that basis, the exemption under Notification No. 88/1988-C.E. for clearances to Khadi and Village Industries was considered applicable, and the duty demands in the impugned orders were held unsustainable.

---

---

Issues: Whether the repacked products cleared by the assessee were classifiable as synthetic detergents and entitled to exemption under Notification No. 88/1988-C.E. dated 01.03.1988.

Analysis: The chemical examiner's certificate recorded the composition of the product as organic surface active agents, fragrances and additives. The products repacked by the assessee from bulk packs into retail packs, with added materials such as fragrance and colours, matched the HSN explanatory notes for synthetic detergents and fell within the scope of Chapter sub-heading 3402 90. On that basis, the exemption claimed for clearance to Khadi and Village Industries was held to be applicable.

Conclusion: The assessee was entitled to the exemption, and the duty demands confirmed in the impugned orders were unsustainable.

---