The assessee was engaged in the manufacture of ‘Dhatri Brand Hair Care Herbal Oil’ and ‘Dhatri Brand Massage Oil’. The Department contended that the respondents have not obtained Central Excise Registration and have not maintained records and have not paid duty even after crossing the SSI exemption. The Department sought to classify the Hair Oil and the Massage Oil under Central Excise Tariff Heading 3305 and 3304 respectively as cosmetics.
The Bangalore Bench of the Tribunal in the case of one Haridev Formulations, who was earlier a job worker of the assessee, has concluded that the products ‘Dhatri Brand Hair Care Herbal Oil’ and ‘Dhatri Brand Massage Oil’ would fall under Chapter 30 of the Central Excise Tariff Act. Further, the Bench observed that it appears that the Hair Oil with the different flavor and different components is manufactured by different companies. In the case of Dabur (India) Ltd. (supra), the Supreme Court has decided the matter in favour of the assessee and considered the Hair Oil as Ayurvedic product. Similarly, the Supreme Court in the case of Puma Ayurvedic Herbal (P.) Ltd. v. CCE considered the Hair Oil as Ayurvedic medicine.
Citation: [2018] 97 taxmann.com 5 (Bangalore – CESTAT)