Cce, Pondicherry Vs. M/S. Parry Confectionery Ltd. - Court Judgment

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CourtCustoms Excise and Service Tax Appellate Tribunal CESTAT Chennai
Decided OnApr-06-2011
Case Number E/383/2003 Arising out of Order-in-Appeal No. 50/2003-CE dated 13.03.2003, passed by the Commis
Judge THE HONOURABLE MS. JYOTI BALASUNDARAM, VICE PRESIDENT & THE HONOURABLE DR. CHITTARANJAN SATAPATHY, TECHNICAL MEMBER
AppellantCce, Pondicherry
RespondentM/S. Parry Confectionery Ltd.
Advocates:For the Appellants: C. Dhanashekaran, SDR. For the Respondents: J. Shankar Raman, Advocate.
Excerpt:
per: jyoti balasundaram, 1. the revenue is in appeal against the order of the commissioner (appeals), who has accepted the contention of the assessees that the products “lakerol strong” and “lakerol spearmint” classifiable as ayurvedic medicine under chapter sub heading no. 3003.39 - it is the revenue’s case that the products are nothing but sugar confectionery and classifiable under chapter sub heading no. 1704.90. 2. we have heard both sides. we find that the products are manufactured under licence for manufacturing of ayurvedic products. the main ingredients of the products are sugar and glucose, pudina swarasam and nilgiri tailam as acidulants and have prophylactic or therapeutic uses. we find that in the case of naturalle health products (p) ltd. vs. cce, hyderabad - 2003 (158) elt 257 (s.c.), the apex court has held that vicks medicated cough drops and vicks vaporub throat drops manufactured in accordance with and under licence issued under drugs and cosmetics act, 1940, are classifiable under sub heading 3003.30. the commissioner (a) has noted that in the case of the sister unit of the same assessee, the assistant commissioner has passed order holding that the same products as in dispute in the present case were classifiable under the chapter sub heading no. 3003.39 as ayurvedic medicines and the said order has become final and no appeal has been filed against it by the department. in the light of the above discussion, we hold that there is no warrant to interfere with the impugned order and accordingly, uphold the same and reject the appeal filed by the department.
Judgment:

Per: Jyoti Balasundaram,

1. The Revenue is in appeal against the order of the Commissioner (Appeals), who has accepted the contention of the assessees that the products “Lakerol strong” and “Lakerol spearmint” classifiable as Ayurvedic medicine under Chapter Sub Heading No. 3003.39 - it is the Revenue’s case that the products are nothing but sugar confectionery and classifiable under Chapter Sub Heading No. 1704.90.

2. We have heard both sides. We find that the products are manufactured under licence for manufacturing of Ayurvedic products. The main ingredients of the products are Sugar and Glucose, Pudina Swarasam and Nilgiri Tailam as Acidulants and have Prophylactic or therapeutic uses. We find that in the case of Naturalle Health Products (P) Ltd. Vs. CCE, Hyderabad - 2003 (158) ELT 257 (S.C.), the apex Court has held that Vicks Medicated cough drops and Vicks Vaporub throat drops manufactured in accordance with and under licence issued under Drugs and Cosmetics Act, 1940, are classifiable under Sub Heading 3003.30. The Commissioner (A) has noted that in the case of the sister unit of the same assessee, the Assistant Commissioner has passed order holding that the same products as in dispute in the present case were classifiable under the Chapter Sub Heading No. 3003.39 as Ayurvedic Medicines and the said order has become final and no appeal has been filed against it by the department. In the light of the above discussion, we hold that there is no warrant to interfere with the impugned order and accordingly, uphold the same and reject the appeal filed by the department.