M/S Dabur INDIA LTD. vs. Commissioner Of CGST, Ghaziabad And 4 Others
Held
The Court held that the product 'Odomos' was correctly classified as a mosquito repellent under HSN 38089191. The primary test for classification, as per common parlance and market perception, established Odomos as a mosquito repellent. The Appellate Authority's finding that the product is declared as a "mosquito repellent cream" on its packaging, advertisements, and website, and its widespread availability in general stores, supported this classification. The Court also noted that the active ingredient, NNDB, is an improved version of DEET, which is listed as an insecticide under the Insecticides Act, 1968, further reinforcing its classification as an insecticide/repellent. The Court applied Rule 3(a) of the General Rules for Interpretation of the Customs Tariff Act, stating that a specific entry (HSN 38089191 for insect repellents) must prevail over a general entry (heading no. 3004 for medicaments). The Court found the petitioner's reliance on M/s Balsara Hygiene Products Limited to be misplaced as the earlier case dealt with a different statutory entry. The Court also affirmed that its review was limited to the decision-making process, not the decision itself, and found no procedural impropriety or perversity in the Appellate Authority's order. Therefore, the writ petition was dismissed.
Facts
The petitioner, M/s Dabur India Ltd., filed a writ petition challenging an order dated August 19, 2019, passed by the Appellate Authority for Advance Ruling for Goods and Services Tax, Uttar Pradesh. This order upheld the classification of the product 'Odomos' under HSN 38089191 of Chapter 38 of the Customs Tariff Act, 1975, classifying it as a mosquito repellent. The petitioner sought a writ of mandamus to classify Odomos as a medicine under heading no. 3004 of the Customs Tariff Act, 1975. The Appellate Authority's decision was based on the product's common parlance identity, its prominent declaration as a "mosquito repellent cream" on packaging, advertisements, and the company's website. The authority also noted that Odomos is not typically prescribed by medical practitioners and is widely available in general stores, not just pharmacies.
Key Issues
1. Whether the product 'Odomos' should be classified as a medicine under heading no. 3004 of the Customs Tariff Act, 1975, or as a mosquito repellent under HSN 38089191, considering the provisions of the Central Goods and Services Tax Act, 2017, and Uttar Pradesh Goods and Services Tax Act, 2017. Petitioner's contentions: The petitioner argued that Odomos is a medicament, possessing all characteristics of a medicine and used as such. Its chemical composition also establishes its essential character as a medicine. They relied on the principle that a specific entry should prevail over a general entry and contended that Odomos fits the description of a medicine. They also cited the case of M/s Balsara Hygiene Products Limited. Revenue's contentions: The Revenue contended that the product was correctly classified as a mosquito repellent by both the Authority for Advance Ruling and the Appellate Authority. They argued that the decision-making process was not flawed, supported by the material on record and the reasoning adopted by the authorities below. They emphasized that the common parlance and market identity of the product is as a mosquito repellent.
Sections Cited
Section 101, Chapter 38, HSN 38089191, Heading No. 3004, Heading No.30049099, Insecticides Act, 1968, Section 3 of the Uttar Pradesh Sales Tax, 1948
AI-generated summary — verify with the full judgment below
1 Court No. - 7 Case :- WRIT TAX No. - 1308 of 2019 Petitioner :- M/S Dabur India Ltd. Respondent :- Commissioner Of Cgst, Ghaziabad and 4 Others Counsel for Petitioner :- Atul Gupta, Abhishek Kumar Tripathi Counsel for Respondent :- A.S.G.I.,Ashok Singh Hon'ble Biswanath Somadder,J. Hon'ble Ajay Bhanot,J. [Per: Hon'ble Ajay Bhanot, J.]
The petitioner has invoked the extraordinary jurisdiction of this Court under Article 226 of the Constitution of India, being aggrieved by the order dated 19.08.2019 passed by the Appellate Authority for Advance Ruling for Goods and Services Tax, Uttar Pradesh. The order assailed in the writ petition dated 19.08.2019 has been passed under Section 101 of the Central Goods and Services Tax Act, 2017 and Uttar Pradesh Goods and Services Tax Act, 2017. 2. By means of the impugned order dated 19.08.2019, in the instant writ petition, the Appellate Authority has upheld the ruling of the Authority for Advance Ruling classifying odomos (product in issue), under HSN 38089191 of Chapter 38 of the Customs Tariff Act, 1975. The petitioner has also prayed that a writ in the nature of mandamus to be issued for classification of the product odomos as medicine
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