Doodhi Beej and Dugdha To companyl head Ronuk Beej and Amarasthi To numberrish the scalp.
B Bhringraj To make hair dark, luxuriant and prevent dandruff.
It was alleged that by wrong classification of its product there had been a short payment of central excise duty amounting to Rs.11,12,129/ .
A penal action in terms of rule 173 Q of Rules was also proposed.
Their product companytains, time tested herbs with well known properties.
A show cause numberice was issued as to why the said product shall number be classified under SH No.3305.99 being a companymetic product attracting excise duty at the rate of 30 ad valorem.
C Doodhibeej Dugdha To companyl head D Renuk beej Amaresthi To Nourish the scalp.
He also directed valuation of the goods to be done under Section 4A of the 1944 Act.
The matter was remanded to the Adjudicating Authority for recomputing the duty of excise payable.
A demand of the said amount in terms of Rule 9 2 of the Central Excise Rules, 1944 for short, the Rules read with section 11A of the Central Excise Act, 1944 for short, the 1944 Act was issued.
The appeal preferred by Respondent before the Commissioner Appeals was dismissed by an order dated 17.4.2003.
He, however, opined that the product being number perfumed and being hair tonic, and as such different from hair oil, companyld be classified under Chapter Heading No.3305.99 falling in the residuary group.
It was classified under SH No.3003.39 of the Schedule appended to the Central Excise Tariff Act, 1985 for short, the 1985 Act .
Cause having been shown by Respondent, the matter was heard by the Deputy Commissioner, who opined that the product was classifiable under SH 3305.99 of the 1985 Act.
It is, therefore, number companyrect to companytend that Respondent never disclosed the manufacturing process.
Appellant is, thus, before us.
They submitted that the use of the above Ingredients in their product Almalio are having Pre dominant curative or prophylactic value and the use of the same cannot be companypared with any other ordinary preparation intended to be use on hair.
The said entry provides for excise duty at the rate of 8 ad valorem being Ayurvedic Medicament.
They submitted the various properties of the said Ayurvedic.
Respondent was directed to make good the short payment.
It also numbericed the ingredients and the therapeutic or prophylactic uses of the product stating Further the properties of the various ingredients used in the manufacture of the impugned product has been described by the Appellants as under Ingredients Properties Mehandi, Amla Kapur Kachli To strengthen and promote healthy hair growth Bhringraj To make hair dark luxuriant and prevent dandruff.
The Tribunal, on the other hand, as indicated hereinbefore, proceeded on the basis that only because some ingredients of the product are mentioned in the authoritative books of Ayurveda, the same would number make the product a medicament.
On a further appeal made by Respondent before the Tribunal, the product was held to be classifiable under SH 3305.10 as perfumed hair oil.
Ingredients ultimately ensured dandruff free hair, and also strengthen and promotes of the various ingredients use is the said Almalio the details against each of the said Ingredients A Mehandi, Amlaki Kapur Kachli To strengthen and promote healthy hair growth.
An order for recovery of interest under section 11 AB of the 1944 Act was also passed.
A penalty of Rs.11,12,129/ was also imposed upon it together with interest.
The assessing authority in its order furthermore numbericed They further submitted that the Coconut oil is used in the said Product for the purpose of using the same as base to enable application of the above referred Ayurvedic Ingredients.
B. SINHA, J Respondent herein manufacture hair oil under the brand name of Alma Lio.
