Page 100 - GSTL_16th July 2020_Vol. 38_Part 3

338 GST LAW TIMES [ Vol. 38
cant is contesting that when system itself is specifying the HSN
code for henna powder as 1404 10 19, there is no doubt that the said
product will not be covered under Chapter 14. Though many in in-
dustry are classifying the same goods in Chapter 33. Due to this
confusion amongst the respected trade itself, he has applied for
seeking advance ruling.
• First what is Henna or Mehendi?
As per Wikipedia,
Henna (Arabic : ), also known as mehndi in Hindi-Urdu, and hi-
nah in Hebrew, is a dye prepared from the plant Lawsonia inermis.
also known as hina, the henna tree, the mignonette tree, and the
Egyptian privet, [1] the sole species of the genus Lawsonia.
• From the above definition we observe that Henna and Mehendi are
same product with different names and is obtained from Mehendi
tree. Dried leaves of Henna/Mehendi are collected and further
grinded to obtain Mehendi/Henna powder.
• Now, to examine classification of Henna/Mehendi powder under
CGST Act, 2017 and allied acts, Custom Tariff Act, 1975 were con-
sulted.
We observe that the Tariff Items 1404 10 11 to 1404 10 90 has already
been omitted from the Custom Tariff Act, 1975 vide the Finance Act,
2006 [No. 21 of 2006], dated 18th April, 2006 and hence no such tar-
iff item is available in Customs Tariff Act, 1975.
The relevant extract of the Finance Act, 2006 is as under :-
“(14) in Chapter 14, -
(i) for Notes 3 and 4, the following Note shall be substituted,
namely :- ”3. Heading 1404 does not apply to wood wool
(heading 4405) and prepared knots or tufts for broom or brush
making (heading 9603).”;
(ii) tariff item 1402 00 00 and the entries relating thereto shall be
omitted;
(iii) heading 1403, sub-heading 1403 00, tariff items 1403 00 10 and
1403 00 90 and the entries relating thereto shall be omitted;
(iv) in heading 1404, sub-heading 1404 10, tariff items 1404 10 11 to
1404 10 90 and the entries relating thereto shall be omitted;”
• In view of the above, we observe that after the said amendments in
the Customs Tariff Act, 1975 the question with regard to classifying
the product Henna/Mehendi powder under Tariff Item 1404 10 11
does not arises inasmuch as the fact that the tariff item has been
omitted.
• We further observe that it is well known fact that Henna/Mehendi
powder has a natural property of dye/tanning and is generally
used as hair dye. Therefore, we observe that the product is rightly
classifiable under Chapter Heading 3305 as preparations for use on
the hair and covered under amended Notification No. 41/2017-
Central Tax (Rate), dated 14 November, 2017 of the principal Notifi-
cation No. 1/2017-C.T. (Rate), dated 28-6-2017 and attracts GST @
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