TaxTMI 
TaxTMI 
1997 (1) TMI 179
X X X X Extracts X X X X
X X X X Extracts X X X X
....ollector of Central Excise (Appeals) confirmed the order-in-original passed the Assistant Collector dated 20-3-1989 holding that the appellants' product `M-37' was classifiable under Heading 3305.10. Appellants claim that the said product is classifiable under Heading 3302.90. 2. The dispute needing examination relates to mainly in classification of the product under three competing entries in Chapter 33 of the Central Excise under the Central Excise Tariff Act, 1985 which read as under : - 33.01 3301.00 - Essential oils (terpeneless or not), including concretes or absolutes; resinoids; concentrates of essential oils; in fats, in fixed oils, in waxes or the like; terpenic by-products....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tention that once the classification list was approved it could not be re-opened without sufficient cause was also rejected by the Assistant Collector by holding that the new classification will operate only prospectively from the date of issue of SCN viz. 5-1-1988, and the demand of duty for the earlier period would be discharged. 3.  Against the said order the appellants filed an appeal before the Collector of Central Excise (Appeals),Ahmedabad. Collector (Appeals) who by the impugned order found that the appellants had themselves admitted that their product 'M-37' was a mixture of essential oils, aromatic chemicals and perfumes which before use as hair oil was required to be diluted with a vegetable oil. He rejected the appellant....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Since their product was not used as a raw material in industry but was sold as a finished product in the market, it could not be classifiable under Heading 3302.10. Further, Heading 33.05 covered preparations for use on the hair. Collector (Appeals) therefore held that since the preparation was exclusively for use on hair and since it was in a concentrated form, it was required to be diluted with the required proportion of vegetable oi1. Hence the product was rightly classifiable under 33.05 as done by the Assistant Collector. Hence the present appeal. 4.  For the appellants Shri V.G. Bhade, Consultant appeared. For the Department Shri A.K. Madan, ld. SDR appeared before us. 5.  Ld. Consultant strongly urged that the issuan....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... a perfumed hair oil ready for use. 6.  Ld. DR on the other hand submitted that there was no illegality in issuing a show cause notice with a view to changing an approved classification list and both the lower authorities have held that the revised classification would apply only prospectively and not retrospectively. On the question of classification DR submitted that since the Heading 33.02 covered odoriferous substances of a kind used as raw material for industry, classification under Heading 33.02 would not be applicable in the present case as the product is admittedly used only for preparing hair oil. 7.  We have considered the submissions made on both sides. 8.  On the question of Assistant Collector's authorit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....quite valid. T.I. 33.02 covers mixtures of odoriferous substances and mixtures with a basis of one or more of these substances of a kind used as raw materials in industry. Even if it is assumed that M-37 is an odoriferous substance or mixture it has not been shown that it is of a kind used as a raw material in industry. What has been shown is that it is used in making hair oil. Unless it can be established that it comes first under T.I. 33.02, it cannot obviously be brought under T.I. 3302.90. We also observe that the revised classification approved by the Assistant Collector is inappropriate having regard to the admitted facts of the case. M-37 is not a hair oil. It is only a concentrate which can be mixed with oil for making perfumed hair....