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2018 (7) TMI 681 - AT - Central ExciseClassification of manufactured goods - ayurvedic medicines - it was alleged that M/s IRLP is manufacturing beauty products as that of cream, lotions, etc. and thus are the manufacturers of the products called cosmetics and toilet preparations which are chargeable to duty at the rate of 40% under Chapter 33 of CETA - related party transaction. Held that:- This Tribunal After talking in detail all names of products and descriptions on the label, 72 products of the appellant were held as not to be ayurvedic medicines but as cosmetics. M/s. IRLM and IRLP were held not to be related persons. In terms of Section 4 (4) (c) of Central Excise Act, in as such the price at which M/s. IRLP sold the product was held to be the one to be adopted as the basis for Department for the assessable value. Similarly, M/s IRLP & IRL Marketing were also held to not to be the related persons. Hence, the price at which IRLP sold the goods for the basis of determining the assessable value - The benefit of extended period of limitation was also denied to the Department and the penalties upon IMPL, IRLM and Smt. Vinita Jain were set aside and the matter was remanded only for requantificaton of the duty depending upon the finding about 72 products of the appellants to be classified as cosmetics and depending upon only those Show Cause Notices which were within the period of general limitation. It becomes clear that the only Act assigned to Commissioner while remand was to requantify the duty in terms of above. The matter with respect to limitation and that of penalty was settled and thus has attained finality. Thus, it is held that the Commissioner in the Order under challenge has exceeded its authority being out of the ambit of the direction of Hon’ble apex court while remanding the matter. We hereby confirm the demand as far as requantification of duty is concerned. However, we set aside the penalties and the interest imposed - appeal allowed in part.
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