Highlights
- The Supreme Court of India has upheld the classification of pure coconut oil as edible oil for levy of duty, dismissing the appeal filed by the Commissioner of Central Excise against Marico Limited and its job workers.
- The Commissioner of Central Excise had originally classified pure coconut oil under the category of hair oil, which would have resulted in an excise duty of ₹ 66.77 Crores, but this classification was overturned by the Customs Excise and Service Tax Appellate Tribunal in favor of Marico.
The Supreme Court of India has dismissed the appeal filed by the Commissioner of Central Excise (CCE) against four job workers of Marico Limited, and Marico regarding the classification of pure coconut oil for levy of duty.
The top court has upheld the order passed by the Tribunal classifying pure coconut oil as edible oil for the purpose of levy of duty.
CCE filed the appeal in 2009 for the period 2005 to 2007 regarding the classification of pure coconut oil under the erstwhile Excise regime for levying excise duty.
“The excise duty for the period under appeal was exempt as per the classification of edible oil adopted by the said job workers based on the facts and relevant legal provisions,” Marico said in an exchange filing.
The CCE classified the same under the category of hair oil for levy of excise duty of ₹ 66.77 Crores.
The said job workers had previously filed an appeal before the Customs Excise and Service Tax Appellate Tribunal (CESTAT), which decided the matter in their favor. Since then, the matter has been contested by CCE before the Supreme Court.
The appeal was filed by the Commissioner of Central Excise (CCE) against four job workers of Marico Limited, and Marico Company.
The disclosure to the exchange was made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
