Per C.N.B. Nair : The issue raised in these appeals of M/s. Amit Ayurvedic & Cosmetic Product (I) Pvt. Ltd., Daman is the Central Excise classification of "Parachute Dandruff Solution Coconut Hair Oil" manufactured by them marketed by M/s. Marico Industries Ltd., Mumbai. Manufacturer assessee claimed classification and payment of duty under Chapter sub-heading No. 3305.10. As against that, the impugned order has held the product to be classifiable under Chapter sub-heading 3305.99. There are consequent demand for duty, interest and imposition of penalties.

2. For better understanding of the dispute, we may extract the relevant tariff Headings:

The contention of the appellant is that 3305.10 is specific for "perfumed hair oils" and since the appellant's product is a hair oil that has been perfumed, it should rightly be classified under the specific heading for it and not under the residuary heading - "others". As regards the product being perfumed hair oil, it is being pointed out that the composition of the product makes it clear that perfume has been specifically added to coconut oil to make it perfumed hair oil. It is being pointed out that the proposition that the specific should be preferred over the general is well settled. It is also pointed out that Note 6 to Chapter 33 makes it clear that the Note applies to "perfumed hair oils ........ shampoos." It is also being pointed out that if the Revenue's contention that the product is to be classified based on its medicinal property of dandruff control, then its classification would go out of Chapter 33 to Chapter 30, which chapter is for pharmaceutical products. During the hearing of the case, learned Counsel for the appellants also pointed out that according to the ratio of World Customs Organisation Classification Decision also, the product's classification does not change based on its subsidiary medicinal property. he referred in this connection to the World Customs Classification Decisions on shampoos. Learned Counsel pointed out that the Council approved the classification of Shampoos containing 2% Ketoconazole (a synthetic, broad-spectrum antifungal agent), under 3305.10 as "shampoo" and not as pharmaceutical product under heading 30 with the observations as under:

"Although this product was claimed to have therapeutic or prophylactic properties within the meaning of heading 30.04, it was pointed out that it was used in the same manner as any other shampoo and it performed the dual function of washing the hair and treating fungus infections. Therefore, the HSC decided that it should be classified in sub-heading 3305.10.

Application of GIR, Note 1(d) to Chapter 30 and Note 3 to Chapter 33."

It is the learned Counsel's contention that just as a shampoo did not undergo change in its classification on account of its incidental medication (to control dandruff), the perfumed hair oil also does not change its classification because of its incidental medication (to control dandruff). Learned Counsel has also relied on the decision of this Tribunal in the case of B.K. Products vs. CCE, Patna - 1998 (28) RLT 837 (CEGAT)=1998 (104) ELT 430 (T) in support of his contention that perfumed hair oil merits classification under Chapter sub-heading 3305.10 and not under sub-heading 3003.30.

3. Ld. SDR has canvassed classification under sub-heading 3305.99 based on the fact that the product is marketed and thus, derives its commercial identity, as a "dandruff solution" and not as a perfumed hair oil. During the hearing of the case, learned SDR took us through the marketing and other materials relied on in the impugned order in support of the finding that the product goes well beyond being a perfumed hair oil and its standing is as a remover of dandruff. Our attention has been drawn to the observations in the impugned order that the product h