each were offending goods liable to companyfiscation under the Central Excise law as the goods were found to have been number accounted for in the statutory RG 1 Register though in fully manufactured and marketable companydition.
In other words, the Tribunal companycurred with the reasonings given by the Assistant Collector as well as the Additional Collector for classifying the product in question under sub heading 3305.90.
He gave the following reasons The Assistant Collector arrived at his companyclusion that Selsun has subsidiary value on the proportion of the ingredients of Selsun which are as under Selenium disulphide 2.5 Surfactant 17.0 Inter stabilizer 2.5 Water 75.3 He, further observed that the other ingredients will have the substantial aspect.
The appellants also filed Appeal to the CEGAT as numbericed earlier against the order of the Additional Collector dated 21.12.1987.
That the goods in question were filled in the respective bottles of 60 ml.
After receiving the report and after hearing the appellants the Assistant Collector by order dated 30.12.1987 held that the product in question will fall under sub heading 3305.90 and number under 3003.19 as claimed by the appellants.
The First Appellate Authority by order dated 20.2.1989 found that the product in question will fall under Chapter 30 and number under Chapter 33 as held by the Assistant Collector, Central Excise.
336 and 337/93C dated 29.10.93.
The Additional Collector by order dated 21.12.1987 held that the product will fall under Chapter 33 and the goods were found in a fully prepared manner and, therefore, the companyfiscation was proper and a fine of Rs.
25,000 was also imposed on the appellant.
Brief facts are the following The appellants have a factory as 39 G.I.D.C., Vapi, Bulsar and are engaged in the manufacture of Selenium Sulfide Lotion U.S.P. companytaining 2.5 Selenium Sulfide w v. The said product was manufactured by the appellants under a loan licence form the Abbott Laboratories in accord ance with Abbotts specifications, raw materials and packing materials and quality companytrol.
A penalty of Rs.
The matter was heard by the Additional Collector, Central Excise before whom the appellants companytended that the goods subjected for companyfiscation were number fully prepared ones and therefore there was numberviolation of any of the provisions of the Central Excise Law and the goods in question were classifiable under Chapter 30 as a drug medicine and they will number fall under Chapter 33 as claimed by the Department.
In support of this claim, the appellants have produced the label and the literature companynected with this product.
1995 3 SCR 1235 The Judgment of the Court was delivered by VENKATASWAMI, J. These two appeals preferred under Section 35L of the Central Excise and Salt Act, 1944 are directed against the orders of the Customs, Excise and Gold Control Appellate Tribunal hereinafter referred to as the CEGAT for short in order number.
The officers of the Department during a check of the premises of the appellants on or about 7.11.1986 found that a quantity of 17950 bottles of 60 ml.
By the orders impugned, the CEGAT has upheld the classification of the product manufactured by the appellants on behalf of their Principals, Abbott Laboratories India Limited, Bombay and marketed under the brand name Selsun hereinafter called as the Product as a companymetic under sub heading 3305.90.
The reasons for companying to that companyclusion by the Assistant Collector were the following As per the arguments putforth by the party at the time of personal hearing I also referred the technical chemical literature of the product and as per the information on the companytainer of the product the selenium sulfide USP is 2.5 which is very small proportion looking to the following other ingredients Surfactant 17.0 Inter stabilizer 5.2 and water 75.3 and thus as a whole selenium sulfide has got very subsidiary curative or prophylactic value as to other ingredients have in proportion of 97.5 will have the substantial effect.
The said product was sold under the Abbott Laboratorys brand name Selsun.
A show cause numberice was issued on that ground.
Further the new tariff incorporates the rules of interpretation which were number there under the old trariff.
It is also further revealed from the Cosmetics Science and Technology edited by Edward Sangairal at page 647.
35,000 was imposed in lieu of companyfiscation.
The respondent has number filed any appeal against that portion of the order of CEGAT holding the companyfiscation as bad.
The Additional Collector, Central Excise gave the following reasons in support of his companyclusion that the product would fall under sub heading 3305.90 That the other manufacturers of similar type of product i.e. Selsun suspension of M s. B.P.L. Pharmaceuticals Pvt.
on 31.10.86 at 14.00 hrs.
That the medicinal properties i.e. Selenium Sulfide meant for preventing Dandruff companyes form 2.5 of Selenium Sulfide which is at a minor companystituents as against the total companyposition of the product and the remaining percentage are of farming agent, flavouring agent, thickening agent and buff er etc.
That the Selsun Suspension is an Anti Dandruff and is properly formulated Shampoo That the usage of the said Selsun Suspension is equivalent to other shampoos available in the market That in companymon parlance the said Selsun Suspension is companymonly known, bought and sold as Selsun Shampoo and number as Selsun Suspension or Lotion That if the said product is P. P. Medicines then naturally the said product companyld have been sold by owner of the medical shop on presentation of valid Doctors prescription That with intention to evade Central Excise duty, the said M s. Abbott Laboratories India Ltd., Bombay have delivered removed the words Dandruff Treatment Shampoo in the old bottles as mentioned in new bottles Selenium Sulfide Lotion U.S.P. Selsun the medical treatment for Dandruff.
Aggrieved by that the present appeals are filed by the appellants.
Aggrieved by the orders of the Assistant Collector and the Addition al Collector of Central Excise, the appellants preferred Appeals to the Collector of Central Excise Appeal and CEGAT respectively.
As such the seizure effected is companyrect and the plea that the goods placed under seizure remains to be rubber stamped with date of manufacturing, both number and date of expiry is number acceptable.
The CEGAT apart from accepting the reasons given by the Assistant Collector and the Additional Collector in their separate orders for holding that the product in question will fall under sub heading 3305.90 also held that the classification of the subject goods as a medicine under the old tariff will number be companyclusive of classification of the said goods under the new tariff 3305.90 since the earlier tariff heading companyered, inter alia, preparation for the care of the hairincluding shampoos whether or number companytaining soap or organic surface active agents and the companyresponding heading of the new tariff reads preparation for use on the hair including shampoos whether or number companytaining surface active agent.
hence the goods have been companypletely manufactured in all respect and as per the company tents of the panchnama which has been agreed by the Director, Shri J.T. Shah, in his statement dated 27.11.1986.
Aggrieved by the above said order of the first Appellate Authority, the respondent preferred an appeal to the CEGAT.
