Customs, Excise and Gold Tribunal - Delhi
Silver Oak Labs vs Collector Of Customs on 5 February, 1999
Equivalent citations: 1999(108)ELT293(TRI-DEL)
ORDER
P.C. Jain, Vice President
1. The appellants herein imported goods described as "synthetic perfumery compound" and claimed ITC (HS) classification under 33029001.10. The Revenue drew a sample of a consignment so imported by the appellants and sent it for test. They asked the following queries from the Chemical Examiner :-
(1) Composition, (2) nature, (3) whether it is synthetic perfumery compound and (4) whether it is alcoholic solutions for perfumery.
1.1 In his report the Chemical Examiner stated as follows :-
"The sample is a mixture of odoriferous substances in the form of light brown colour liquid and it is free from alcohol. It is a synthetic perfumery preparation."
In the meantime another consignment had been imported by the appellants. Based on the aforesaid test report Revenue felt that it should be classified under ITC (HS) Classification 33029001.20. Classification as claimed by the appellants required a special import licence which was produced by the appellants. It is not disputed by the appellants that classification as proposed by the Revenue required a licence which was not produced by the appellants. Hence the adjudication order was passed by the adjudicating authority, on waiver of a show cause notice by the appellants herein, holding that the classification as proposed by the Revenue is correct and rejected the classification claimed by the appellants. The appellants did not succeed before the lower appellate authority. This was the fate in respect of both the consignments. Hence these two appeals before us.
2. In order to understand the controversy, we reproduce below the Heading 3302 and its sub-classifications as given in ITC (HS) Classification :-
---------------------------------------------------------------------------- 33.02 Mixture of odoriferous substances and mixtures (including alcoholic solutions) with a basis of one or more of these substances, of a kind used as raw materials in industry;
Other preparations based on odoriferous substances, of a kind used for the manufacture of beverages 33021000 Of a kind used in the food or drink industries 33021000.10 Synthetic Restricted Import Import flavouring permitted permitted essences against a against Special licence or in Import Licence accordance (SIL) with a Public Notice issued in this behalf 33021000.20 Other Restricted Import permitted against a licence or in accordance with a Public Notice issued in this behalf 33029000 Other 33029001 Mixtures of aromatic chemicals & essential oils as perfume base 33029001.10 Synthetic Restricted Import Import perfumery permitted permitted compounds against a against Special licence or in Import Licence accordance (SIL) with a Public Notice issued in this behalf 33029001.20 Other Restricted Import permitted against a licence or in accordance with a Public Notice issued in this behalf 33029002 Synthetic Restricted Import Import essential oils permitted permitted against a against Special licence or in Import Licence accordance (SIL) with a Public Notice issued in this behalf 33029002.10 Synthetic Restricted Import Import perfumery permitted permitted compounds against a against Special licence or in Import Licence accordance (SIL) with a Public Notice issued in this behalf 33029003 Aleuritic acid Restricted Import permitted against a licence or in accordance with a Public Notice issued in this behalf 33029009 Other (alcoholic solutions for perfumery) 33029009.90 Other Restricted Import permitted against a licence or in accordance with a Public Notice issued in this behalf
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2.1 In short, the dispute is whether synthetic perfumery compounds as imported by the appellants are different from synthetic perfumery preparations, as held by the Chemical Examiner in the context of the classification under ITC (HS).
3. Learned Consultant, Shri R. Parthasarthy has drawn attention to the main Classification 33.02. He also draws specific attention to the expression "other preparations" in the said Entry 33.02. Use of the word "other" in the expression "other preparations" he points out, indicates that the earlier group of commodities mixture of odoriferous substances are also preparations otherwise the word "other" would not been used in the second group of commodities under the said Classification 33.02. He has also taken us through the dictionary meanings of New Webster Dictionary. The word 'preparation' has been defined, inter alia, as "something prepared, manufactured or compounded; as, a medicinal preparation...". He, therefore, submits that in the ordinary sense the words 'preparation', compound' and 'mixture' are synonyms. In order to buttress his arguments, learned Consultant has drawn our attention to Webster's New Dictionary of Synonyms where the synonyms of the word 'compound' have been given as mixture, amalgam, composite, admixutre and blend. He, therefore, submits that there is no difference between the expression 'mixture' and 'compound'.
4. We have also heard the learned JDR, Shri Satnam Singh who has reiterated the findings of the lower authorities to the effect that 'prepartion' being different from compound the classification has been held by the Revenue as under 33029001.20.
4.1 We agree with the submissions of the learned Consultant having regard to the scheme of the classification 33.02 and its various sub-classifications. There is no doubt that synthetic perfumery compound is the same thing as synthetic perfumery preparation, as mentioned by the Chemical Examiner. Therefore, the proper ITC (HS) classification for the imported goods would be 33029001.10, as claimed by the appellants herein.
5. In view of the foregoing discussion, we set aside the impugned orders and allow the appeals with consequential relief to the appellants. Further formalities by way of debiting SIL etc. be taken by the Customs authorities in the light of the aforesaid decision.