Per V.K. Ashtana :

In these 14 appeals by Revenue, the simple issue for consideration is whether product "White Petroleum Jelly" manufactured, put into containers namely plastic tubes and plastic containers are to be classified under Chapter 27 as Petroleum Jelly or under Chapter 33 as Cosmetics.

2. Heard Ms. Aruna Gupta, Ld. DR who submits that while there is no doubt that the material contained in these containers is merely White Petroleum Jelly I.P., however other legends printed thereon remove it from the purview of Chapter 27 and make to fall within the purview of Chapter 33. In the case of products packed in plastic containers other than tubes, the legend also includes the trade name "Vaseline" and thereafter the words "an effective dressing for burns, cuts, scrapes etc." and further words "pure and safe". In the packing of the materials in tubes also, apart from the trade name "Vaseline", the legend printed as "Lip Guard" and "relieves dry lips". Ld. DR submits that in the case of jelly packed in the said tubes, the same is sold as a Lip Guard for relieving the dryness of lips when they are applied. Thus, the use is that of protecting and softening the skin of the lips. This is a cosmetic use and hence the product would fall under Chapter 33. Similarly, she submits that in the other case, where the product is packed in plastic container, the legend advertises it as "dressing" for minor skin conditions such as "burns, cuts and scrapes etc." and would also make it as used for the protection of the skin infections by protecting the surface of the skin. Such a protection of the surface of the skin would again amount to cosmetic use making the product fall under Chapter 33. In this connection, she submits that Chapter note 33 in the HSN in the heading "General" clearly records that Chapter 33 does not cover Petroleum Jelly, not perfumed to be put in tins or other containers labelled simply "petroleum jelly" or again "Pure Petroleum Jelly". It is indicated therein that such an item would fall under heading 27.12. Ld. DR is at pains to point out that the words "simply" in respect of the nature of the label shows that where containers contained any other legend or other than merely namely of the product viz. petroleum jelly, then the same would be considered even in terms of this note as not being a pure product falling under Chapter heading 27.12. In this case, such extra legends exist and therefore the product would fall under Chapter 33. In this connection, she also cites the case of Alpine Industries Vs. CCE as in 1997 (92) ELT 53 wherein a similar product namely Lip Salves used for treatment of charred lips was classified under 33. On this ground, the Revenue prays for classification under heading 3304 of the CETA"85.

3. Ld. Consultant for respondents vehemently counters the above submissions. He submits that packages in which the said product is sold clearly bear the legend "White Petroleum Jelly - I.P.". He submits that it is not in dispute that the said product is not perfume. It is also not containing any other adhesives and is comprised purely of white petroleum jelly conforming to Standards of the Indian Pharmacopoeia. He distinguishes the decision in the case of Alpine Industries as the product therein was a mixture of a number of items including Lanoline, Beeswax, and others. There was no Petroleum Jelly-IP considered in that decision. Therefore the said decision stands distinguished on facts itself. He further submits that as per Chapter note 5 to Chapter 33 of the tariff, heading 3304 applies, interalia, to beauty cream and barrier creams to give protection against skin irritants. He submits that white jelly is neither a beauty cream nor barrier cream being merely pure petroleum jelly. He submits that beauty cream and barrier creams have a different base and submits that the items listed in the said Chapter note pertained to a totally different species of products. Ld. Consultant also submits that the Commis