Hair-preparation classification turns on packaging and stated use; bulk henna is separated from unit-packed products.

Grinding, mixing and packing henna and herbal shikakai powders was treated as manufacture because the processes produced saleable commodities with a distinct commercial identity. For excise classification, preparations for use on the hair, supported by labels or literature showing such use, fell under Heading 33.05. Bulk henna powder was treated as a vegetable product more appropriately classifiable under Heading 14.01, while henna powder sold in unit packs and herbal shikakai powder sold with hair-use literature were classifiable under Heading 33.05. The operative distinction turned on the form of packing and the product's represented use.

---

---

Issues: (i) Whether grinding, mixing and packing henna powder and herbal shikakai powder amounted to manufacture for central excise purposes; (ii) whether henna powder and herbal shikakai powder were classifiable under Heading 33.05 or, in the case of bulk henna powder, under Heading 14.01 of the Central Excise Tariff Act, 1985.

Issue (i): Whether grinding, mixing and packing henna powder and herbal shikakai powder amounted to manufacture for central excise purposes.

Analysis: Manufacture was assessed on the basis whether a new commercial commodity with a distinct character, use and name emerged. Henna leaves were cleaned, ground into powder and packed in saleable form. The herbal shikakai product was prepared by mixing several powdered ingredients in fixed ratio and then packing them. The processes brought the goods to a condition fit for consumption and resulted in a commodity known in the market as henna powder or shikakai powder.

Conclusion: The process amounted to manufacture and the products were excisable.

Issue (ii): Whether henna powder and herbal shikakai powder were classifiable under Heading 33.05 or, in the case of bulk henna powder, under Heading 14.01 of the Central Excise Tariff Act, 1985.

Analysis: Heading 33.05, read with Chapter Notes 2, 4 and 6 to Chapter 33, covered preparations for use on the hair and applied to goods put up with labels or literature showing such use. Bulk henna powder was treated as a vegetable product specifically mentioned in the HSN explanatory notes to Heading 14.04 and, therefore, more appropriately fell under Heading 14.01. However, henna powder in unit packs carried literature showing use as a hair dye and conditioner, bringing it within Heading 33.05. Herbal shikakai powder was also sold in labelled unit packs indicating use for the hair and thus fell under Heading 33.05.

Conclusion: Bulk henna powder was classifiable under Heading 14.01, while henna powder in unit packs and herbal shikakai powder were classifiable under Heading 33.05.

Final Conclusion: The appeal succeeded only to the extent that bulk henna powder was taken out of Heading 33.05, while the remaining products were upheld as excisable goods under the hair-preparation entry.

Ratio Decidendi: A product is classifiable as a hair preparation when its packaging and literature show use on the hair, and conversion of raw vegetable material into saleable powder or blended powder may constitute manufacture if it yields a distinct commercial commodity.

---