Naturance Research Lab. P. Ltd. Vs. Cce - Court Judgment

Excerpt:

.....1/93 and 140/83. their contention is that if the benefit of these notifications were granted, the demand will remain limited to rupees two lakh approximately.4. the contention of the revenue is that the authorities below granted the benefit of these notifications.5. the issue is in respect of classification of the goods whether these are ayurvedic medicines or cosmetics. the case of the applicants is arguable. prima facie, it is not a fit case for total waiver of pre-deposit of duty. taking into consideration the facts and circumstances of the case, the applicants are directed to deposit an amount of rupees three lakh within a period of eight weeks. on deposit of rupees three lakh, the deposit of remaining amount of duty and penalty is waived for hearing of the appeal. to come up for reporting compliance on 15.4.2002.

Judgment:

1. The applicants filed this application for waiver of pre-deposit of duty of Rupees 11,56,170 and penalty of Rupees 7.50 lakh.

3. The applicants claimed the classification of 29 products under tariff heading 3003.39 as Ayurvedic medicine whereas the revenue classified the same under Chapter 33 of the Central Excise Tariff. The contention of the applicants is that even assuming that 22 products out of 29 products are to be treated as cosmetics, the demand is to be quantified after granting the benefit of Notification Nos. 1/93 and 140/83. Their contention is that if the benefit of these notifications were granted, the demand will remain limited to rupees two lakh approximately.

4. The contention of the revenue is that the authorities below granted the benefit of these notifications.

5. The issue is in respect of classification of the goods whether these are ayurvedic medicines or cosmetics. The case of the applicants is arguable. Prima facie, it is not a fit case for total waiver of pre-deposit of duty. Taking into consideration the facts and circumstances of the case, the applicants are directed to deposit an amount of rupees three lakh within a period of eight weeks. On deposit of rupees three lakh, the deposit of remaining amount of duty and penalty is waived for hearing of the appeal. To come up for reporting compliance on 15.4.2002.