Please find an interesting read on Indirect Taxation
Its an amazing story of the well known Parachute Hair Oil (Sorry, Coconut Oil) and how companies have been going around the excise department in an intelligent way.
Parachute Hair Oil has been a household name for the past few decades, among the Indian families. All we know is that, Parachute is a Hair Oil. However, the company does not claim so. It just writes “coconut oil”, even though majority of consumers use it like a hair oil.
Coconut oil is an edible product, and it was not liable for excise duty.
Hair oil is a cosmetic product, and it is liable for excise duty.
Did you notice that the bottle of Parachute Hair Oil does not write “hair oil” on it?
Also interesting is the Department’s attempt to tax sachets with oil content less than 200 ml and how the same had to be withdrawn after a series of court rulings
Please find attached a read – Parachute Oil – an edible product or a cosmetic product
Please read it online at https://goo.gl/bkQZXv