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2015 (10) TMI 1839 - CESTAT NEW DELHI

2015 (10) TMI 1839 - CESTAT NEW DELHI - 2015 (324) E.L.T. 572 (Tri. - Del.) - Area based exemption - Classification of goods - products namely Gulabari, Keora Water and Shilajit Capsules - appellants were paying duty on these products either by utilizing Cenvat credit or by cash and claimed the same as refund of the amount paid through PLA - Exemption under Notification No. 56/2002-CE. - Held that:- In the absence of specification or definition as to what constitutes a Rose Water or a Keora Wate .....

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as per the Rules of interpretation when there is a specific heading by the very same name of the product these products cannot be put under generic heading of aqueous solution. As such, we find that these products which are emerging as manufactured items are rightly classifiable under heading 33030020 and 33030030. It is also necessary to mention here that the Department cannot take two different views in respect of same product manufactured by the same person in two different units. - present v .....

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hat the product cleared by the appellant is as per any such text has been put forth before us. The appellant produced registration of this Shilajit Capsules with the Drug Controller and in absence of any contrary evidence by the Department as mentioned above, it is clear that the Ayurvedic medicine cleared by the appellant is manufactured PP medicine and not of generic nature. - Decided in favour of assessee. - Excise Appeal No. 2456, 2458, 2490-2491 of 2011 and 56678 of 2013 - Final Order No. 5 .....

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which they are availing the exemption under Notification No. 56/2002-CE. There are 5 appeals by the appellant. As the issue involved in all these appeals are same, they are taken up together for decision. The period covered is from 01/04/2004 to 31/07/2011. The dispute relates to three products namely Gulabari, Keora Water and Shilajit Capsules. The appellants were paying duty on these products either by utilizing Cenvat credit or by cash and claimed the same as refund of the amount paid through .....

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as Ayurvedic Medicine as the same is made in accordance with formula prescribed in the Authoritative Ayurvedic text which is specified in the 1st Schedule to the Drugs and Cosmetic Act, 1940. As such they are fully exempt in terms of Notification No. 3/2005-CE and accordingly the benefit of Notification No. 56/2002-CE is not available to the same. 2. Show cause cum demand notices were issued to the appellants and they were decided by the Adjudicating Authority by 5 orders covering the period fr .....

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spectively under the main heading Perfumes and Toilet waters. The Department's case that these are different and classified as "aqueous solutions of essential oils" is neither supported by facts nor the Tariff entries. The action of the Department is apparently motivated only to deny the concession extended by the Government under Notification No. 56/2002-CE as is evident from the fact that the appellant's own unit in Sahibabad is manufacturing same items (Rose Water, Koera Wat .....

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argued at length explaining the process of manufacture in respect of Gulabari, Keora Water and Shilajit Capsules. The process undertaken by the appellant in respect of Gulabari is as below:- "Step 1 : Warm propylene glycol in a SS container upto 60 degree Cent. And dissolve MP and PP by stirring. Step 2 : Cool the resultant solution to room temperature, mix Rooh gulab with stirring. Step 3 : Take D.M. Water in manufacturing Tank fitted with mechanical stirrer. Add bronopol. Step 4 : Add the .....

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col in a S.S. container with continuous stirring until Pandanol is completely mixed. Step 2 : Take D.M. Water in the manufacturing tank fitted with mechanical stirrer and add Keora Water to it. Add slowly the solution of step 1 to the bulk with continuous agitation. Make up the final volume with D.M. Water (previously boiled and cooled.) and mix for 20 minutes with constant stirring. Also add Potassium sorbate. Step 3 : Filter, send sample for analysis. Step 4 : Pack after QA approval. Step 5 : .....

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ariff 33030020 and 33030030 respectively. Regarding Shilajit Capsules, the learned Counsel for the appellant stated that the said Ayurvedic medicine is not made as per the specifications mentioned in the Authoritative text and these are PP medicines approved as such by the Drug Controller and hence cannot be categorized as generic Ayurvedic Drug. He also submitted the process of manufacture which indicated addition of certain chemical etc. The drug package also which was produced by the Counsel .....

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learned AR reiterated the findings of the learned Commissioner in his various orders and stated that though Rose Water and Keora Water are specifically mentioned under heading 3303, the learned Commissioner held that the product cleared by the appellant are not fitting into that prescription. 6. Heard both the sides and examined appeal records carefully. In respect of Gulabari and Keora Water whether the process involved in making them amounts to manufacture or not and their correct classificati .....

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input material to arrive at the product by simple refining or purification. The various specific process addition of materials and packing, specific branding result in a new commercially identifiable product and as such we hold these two products are emerging as a result of manufacturing process. Regarding classification it is clear that these products are mentioned by specific name under Tariff heading 33030020 and 33030030. The learned Commissioner's observation that the products sold by .....

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us solutions of essential oils under heading 3301 as that heading deals with essential oils, products of essential oils and aqueous distillates and solutions of essential oils. Further, as per the Rules of interpretation when there is a specific heading by the very same name of the product these products cannot be put under generic heading of aqueous solution. As such, we find that these products which are emerging as manufactured items are rightly classifiable under heading 33030020 and 3303003 .....

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