2008 (12) TMI 115

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....rt as well as sold these goods in the domestic tariff area (DTA) after obtaining permission from the Development Commissioner, NEPZ, Chennai and the jurisdictional Asst. Commissioner of Central Excise, Tuticorin Division, classifying these goods as 'dried flowers/parts of plants' under Chapter Heading 06.03/06.04 of the Customs Tariff Act, 1975 and claiming them to be non-excisable under Chapter 6 of the 1st Schedule to the CETA, 1985. Show-cause notices were issued to them on the ground that potpourris and scented sachets were classifiable under Chapter Heading 33.07 and scented candles under Chapter Heading 34.06 of the CETA 1985, proposing recovery of excise duty, together with interest and also proposing imposition of penalty; the adjud....

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....h as car, with a shelf-life of thirty days. 4. Heading 3307.90 of the Customs Tariff Act, 1975 covers "Pie-shave, shaving or after-shave preparations, personal deodorants, bath preparations, depilatories and other perfumery, cosmetic or toilet preparations, not elsewhere specified or included, prepared room deodorizers, whether or not perfumed or having disinfectant properties." 5. CTH Headings 06.03 and 06.04 read as follows:- 06.03 Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes, fresh, dried, dyed, bleached, impregnated or otherwise prepared. 06.04 Foliage, branches and other parts of plants, without flowers or flower buds, and grasses, mosses and lichens, being goods of a kind suitable ....

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....ance is added, dried flowers and parts of plants acquire a new and distinct identity as room fresheners. HSN Explanatory Notes under Heading 06.03 states that this heading excludes flowers, petals and buds of a kind used primarily in perfumery, in pharmacy, or for insecticidal, fungicidal or similar purposes, provided that, in the condition in which they are presented, they are not suitable for bouquets or for ornamental use. We find that potpourris are considered to be decorative floral arrangements meant to add or create exquisite beauty to a room or a place. Their visual appeal can in no way be masked by the fragrance which is added to the dried flowers and parts of plants. The Revenue also does not dispute that 'potpourris' have visual ....