Supreme Court Ruling on Coconut Oil Tax Classification

The classification of coconut oil, packaged in small quantities (5 ml to 2 liters) by Madhan Agro Industries, for purposes of excise tax was a matter of dispute.

The Revenue argued the oil should be classified as 'hair oil' under Heading 3305 due to its cosmetic use, while the respondent claimed it was 'edible oil' under Heading 1513. The Court noted that Chapter Note 3 in the Harmonized System of Nomenclature (HSN) and the First Schedule to the Central Excise Tariff Act, 1985, supports its classification as edible oil.

The Supreme Court ruled in favor of the respondent, classifying the oil as 'edible oil' under Heading 1513 and dismissed the Revenue's appeal.