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TMI Blog2012 (10) TMI 869X X X X Extracts X X X X X X X X Extracts X X X X ..... of the provision of Rule 27 of Central Excise Rules, 2002. A penalty of Rs. 50 lakhs is imposed upon Shri Ritesh Ajmera, Director of M/s. Mayuri Henna Herbal Pvt. Ltd. 2. After hearing both sides represented by Shri C. Harishankar learned Advocate appearing for the appellant and Shri B. Bhushan, learned Advocate appearing for the Revenue, we find that M/s. Mayuri Henna Herbal Pvt. Ltd., is engaged in the manufacture of various products like "Mayuri Henna Natural Black 50 gms", "Mayuri Henna Natural Black 30 gms", "Mayuri Henna Natural Brown 50 gms", "Mayuri Henna Natural Brown 30 gms", "Mayuri Henna Burgundy 50 gms", "Mayuri Henna Burgundy 30 gms", "Mayuri Henna Natural Henna 100 gms" falling under sub-heading 330590.40 of the Schedul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... airly agreed the dispute essentially revolves around correct classification of Mayuri Henna Natural Black, Mayuri Henna Natural Brown and Mayuri Henna Burgundy. Whereas the appellant have claimed the classification of the same as falling under Heading 1404, the Revenue has classified the same under Chapter 33. 5. Learned Advocate appearing for the appellant has drawn our attention to the chemical examiner's report in respect of the said goods, the report reads :- "TEST REPORT The sample is in the form of dark brown coloured powder packed in unit packing. It is a preparation having following contents :- Cold water extract = 38.3% by wt. Ash content = 21.2 % by wt Moisture = 5.1% by wt Cold water extract and ash content do n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a product for colouring the hair and that such declarations have been made by the appellant in the advertisements. In support his submission that the product is meant for colouring the hair, he has drawn our attention to the outer packagings of the product. If that be so, the same would be classifiable under Chapter 33. 9. He further argued that the chemical test shows the presence of chemical in the product. The Revenue has also recovered and seized the invoices showing purchase of the said chemical. The appellants have not been able to explain as to why the said chemical was purchased by them, if the same was not put to use in the said products. In any case, he submits that the issue stands decided by the earlier decision of the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same are meant for application on the hair and are natural hair colour. If that be so, by applying the ratio of the precedent decision of the Tribunal to the facts of the present case, we are of the view that the appellant does not have a prima facie case in their favour so to allow the stay petition. 12. At this stage, we find that an amount of Rs. 25,20,320/- stands deposited by the appellant during the course of investigation. Learned Advocate appearing for the appellant fairly concedes that there is no financial hardship on the part of the appellant. We accordingly direct the applicants/appellants to further deposit an amount of Rs. 2.50 crores within a period of twelve weeks from today. Subject to deposit of above amount, pre- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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