TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1744
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.... Facts relied upon by the applicant are as follows: 2.1 Composition of the goods CM3K65HP1 which is a Zinc Oxide Mixture Consisting of : a) Zinc Oxide 59.5-63.5% b) Cyclopentasiloxane 28-32% c) PEG-10 Dimethicone 5-7% d) Triethoxycaprylylsilane 0.5-3.0% 2.2 Classification by Manufacturers-CTH 28170010 as Micronized Zinc Oxide for every country. 2.3 Zinc Oxide primary particles are crystalline structure held together by atomic or molecular bonding. They cannot be separated into smaller particles except in extreme physical circumstances. Two or more primary particles often form aggregates during crystallization which in turn group to form agglomerates. Inorganic Zinc Oxide based sunscreen scatter visible light as well, when their particle size is not sufficiently small. This causes the so-called whitening phenomenon upon application which seriously affects the aesthetics and efficacy of Zinc Oxide based formulation. Selection of a suitable dispersing vehicle provides for excellent wetting of particles and enhance dispersion stability. Wetting is the act of getting the particle into the chosen liqui....
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....urers also use it as a solvent to help deliver active ingredients Micronized Zinc Oxide in a product to the skin. However, unlike other silicones, cyclopentasiloxane is volatile, which means that it quickly evaporates and dries when applied to the skin. 2.8 PEG 10 dimethicone is also used These fine particle Micronized zinc oxide are often dispersed in silicone oil in advance and supplied as a silicone oil slurry in order to facilitate blending in the preparation of cosmetics by cosmetic manufacturers. Therefore, when preparing a silicone oil slurry in which fine particle zinc oxide is dispersed at a high concentration, it is necessary to add a large amount of a polyether-modified silicone-based dispersant such as PEG-10 dimethicone. 2.9 Both help improve the spreadability and feel of the sunscreen, making it easier to apply evenly and reduce the white cast, prevent settling of the Zinc Oxide and thus maintain effectiveness. 2.10 Products added to certain chemicals to keep them in their original physical state are also to be regarded as stabilisers, provided that the quantity added in no case exceeds that necessary to achieve the desired result and that the addition doe....
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.... more general description. 2.15 However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. 3 (b) Mixtures, composite goods consisting of different materials or made-up of. different components, and goods put up in sets for retail sale, which cannot be classified by The reference to 3 (a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. 2.16 Essential character is determined by the nature of the material, its bulk, weight or value or by the role of a constituent material in relation to the use of the goods. 2.17 Interpretation of Law as per applicant is as follows: The question is whether addition of solvents like cyclopentasiloxane, PEG-10 Dimethicone and Triethoxycaprylylsilane leads to change of classification from 28170010 to 38256900 for micronized zinc oxide.....
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....ltraviolet (UVA) & (UVB) rays. It therefore helps in preventing Skin Cancer, Sunburn and premature aging. 2.23 Heading 28170010 provides more specific description than heading 38249909 If rule 3 (a) is not acceptable, rules 3 (b) is applicable and which classifies mixtures as if they consisted of material or components which give them their essential character. In the mixture, the main ingredient is Micronized Zinc Oxide which give the protection against UVA & UVB rays. While the solvents and stabilisers' add value to the mixture, they do not constitute the essential character of the product, only enhance the effectiveness of Zinc Oxide by 1) Evenly spreading of Zinc Oxide 2) Prevent Clumping of Zinc Oxide, which reduces effectiveness 3) Prevent settling of Zinc Oxide 4) Reduce white cast of Zinc Oxide 5) Prevent dusting which is a hazard during handling Zinc Oxide. 2.24 Micronized Zinc Oxide itself is particularly suitable to be used as an ingredient for sunscreen formulations and addition of solvent or Stabilizer like triethoxycaprylylsilane in the mixture do not alter the use of the product, as an ingredient for manufa....
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....ide and Cyclopentasiloxane and PEG-10 Dimethicone and Triethoxycaprylylsilane)" (hereinafter refer as the subject goods) on the basis of the information on record as well as the existing legal framework having bearing on the classification of the products in question under the first schedule of the Customs Tariff Act, 1975(hereinafter refer as CTA). 6. The process of classification of goods under the Customs Tariff involves the Interpretation of the Section Notes, Chapter Notes, Sub-Heading Notes, Supplementary Notes, Headings, Sub-headings and the General Rules for Interpretation (hereinafter referred to as the "GRI") of the Customs Tariff and relevant case laws. 6.1 The GRI is a set of rules that aid in the classification of the goods under Customs Tariff. It is a settled law that the GRI must be applied sequentially to arrive at a proper classification of the imported goods. 6.2 Classification of goods in the Nomenclature shall be governed by the following principles : 1. The titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any....
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....ules shall be classified under the heading appropriate to the goods to which they are most akin. 6.3 GRI 1 to 5 lay down the principles determining the classification of goods under a specific Heading, whereas GRI 6 is applicable if the objective is to determine the classification of goods in the Sub-headings of a Heading. GRI 1 of the GRI stipulates that the goods under consideration should be classified in accordance with the terms of the Headings and any relevant Section or Chapter Notes, and if the goods are not classifiable as per the description provided, subsequent rules are to be looked into. Further, the Section Notes or Chapter Notes and Sub-Heading Notes give detailed explanation as to the scope and ambit of the respective Sections and Chapters. These notes have been given statutory backing and have been Incorporated at the beginning of each Chapter. 6.4 It can be inferred from the above provisions that classification of goods is done in accordance with GRI 1 through the primacy of terms of headings and Section Notes and Chapter notes. When the nature and description of goods match the terms of headings in a chapter and further the goods fall within the scope of Se....
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....nts provided that the solution constitutes a normal and necessary method of putting up these products adopted solely for reasons of safety or for transport and that the solvent does not render the product particularly suitable for specific use rather than for general use; (d) the products mentioned in (a) (b) or (c) above with an added stabiliser (Including an anti-caking agent) necessary for their preservation or transport; (e) the products mentioned in (a), ( b), (c) or (d) above with an added anti-dusting agent or a colouring substance added to facilitate their identification or for safety reasons, provided that the additions do not render the product particularly suitable for specific use rather than for general use. On-going through above Chapter Note 1 of Chapter 28, It is observed that the subject goods i.e CM3K65HP1:Zinc Oxide mixture is not a separate chemical element or separate chemically defined compounds. Further, the stabilisers or solvent etc. used in the Zinc Oxide viz. Cyclopentasiloxane, PEG-10 Dimethicone and Triethoxycaprylylsilane in preparation of the said mixture is added neither for safety/ preservation nor for transport. Further, these ....
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....ume which can sometimes give absurd conclusions. A cup of coffee, for instance, is predominantly hot water. It also has milk, sugar and (instant) coffee powder. A couple of teaspoons of sugar makes the coffee sweet to taste but a couple of teaspoons of coffee powder makes it too strong and undrinkable. The smallest component of the drink is usually the coffee powder which imparts the drink its essential character and the predominant hot water is irrelevant. Nimbu pani has lime juice, water and sugar of which the lime juice, the smallest component defines the drink. 22. Ice-cream is neither predominantly ice nor cream nor sugar. It is predominantly (at least 50%) air. Water-melon is 99% water. Human body is also predominantly comprised of water. All matter in the universe, with the exception of that in black holes, is mainly space because the nucleus (with its protons and neutrons) is but a very small part of the atom and a few electrons are revolving around it and rest of the atom between the outer edge of atom and the nucleus is just space. Any tablet marked 5 mg. actually weighs several times more as 5 mg. is only the active ingredient and the rest is filler material lik....
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....whether or not mixed (other than aqueous distillates and aqueous solutions of essential oils, suitable for use as goods of these headings and put up in packing of a kind sold by retail for such use. 9.4 Further, the relevant extract of the HSN explanatory notes of CTH 3304 is as follows: "(3) Other beauty or make-up preparations and preparations for the care of the skin (other than medicaments), such as face powders (whether or not compressed), baby powders (including talcum powder, not mixed, not perfumed, put up for retail sale), other powders and grease paints; beauty creams, cold creams, make-up creams, cleansing creams, skin foods (including those containing bees royal jelly) and skin tonics or body lotions; petroleum jelly, put up in packings of a kind sold by retail for the care of the skin; barrier creams to give protection against skin irritants; injectable intracutaneous gels for wrinkle elimination and lip enhancement (including those containing hyaluronic acid), anti-acne preparations (other than soaps of heading 34.01) which are designed primarily to cleanse the skin and which do not contain sufficiently high levels of active ingredients to be regarded as h....
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.... judgement is as follows: "The phrase 'suitable for such use' under Headings 3303 to 3307 in Chapter Note 3 would have to be read in conjunction with the Explanatory Notes thereto, which categorically state that such packaging must be accompanied with labels, literature or other indications that the product is intended for use as a cosmetic or toilet preparation or it must be put in a form clearly specialized to such use 10. Further, the classification of goods is done in accordance with GRI. The GRI 1 provides the primacy of terms of headings and Section Notes and Chapter notes. When the nature and description of goods match the terms of headings in a chapter and further the goods fall within the scope of Section notes and Chapter Notes of the Customs Tariff, such goods are classifiable as per Rule 1 of GRI. In the instant case, it is undisputed fact that the subject goods i.e. CM3K65HP1 'Zinc Oxide Mixture' which comprises Zinc Oxide, Cyclopentasiloxane, PEG-10 Dimethicone and Triethoxycaprylylsilane is mixture/preparation and prepared for specific use i.e. sun protection and as a physical barrier against UV radiation. Further the description given ....