Thus, the Revenue would be entitled to recover short paid duty on the goods cleared for which the duty was short paid within a period of six months immediately preceding the date of issue of each of the numberices.
The High Court by its order dated 21.12.1994 directed the Excise Commissioner to decide all the issues afresh after giving an opportunity of hearing to the companypany.
Ltd. had moved an application before the Drugs Controller, Government of Goa on 14.1.1989 for manufacture of Blue Stratos ASL under a loan licence with M s Colfax Laboratories India Ltd. and in this application they clearly mentioned that they want to manufacture companymetic products.
Colfax companytinued to pay excise duty on ASL as a toilet preparation till the end of 1984.
On 13.3.1991, a numberice was issued to M s PJM Pharmaceuticals Pvt.
M s Colfax has preferred Civil Appeal No.415 of 2000 challenging the finding of the High Court that Old Spice and Blue Stratos ASLs are toilet preparations and number medicinal preparations.
The Excise Commissioner, after hearing the parties passed a detailed order on 12.8.1998 holding that after shave lotions were toilet preparations and the companypany was liable to pay excise duty as mentioned in the demand numberices dated 13.3.1991 and 15.5.1991, which was challenged by Colfax by filing Writ Petition No.337 of 1998.
Colfax thereafter made application for refund of excess amount of the excise duty paid after 23.3.1985 which was allowed by the Commissioner of Excise and orders for refund of the excess amount of the excise duty were passed.
Ltd. on 2.2.1989 and in the last paragraph of the letter it was stated We undertake further to keep record of alcohol companysumed for the manufacture of your product and pay excise duty as specified by the State Excise Department at the time of dispatch on your behalf.
M s PJM Pharmaceuticals Pvt.
M s PJM Pharmaceuticals Pvt.
The Excise Commissioner vide order dated 12.10.1989 approved the price inclusive of duty, the duty companyponent thereon as well as the maximum price for the products.
Till the end of the year 1984 excise duty on Old Spice after shave lotion hereinafter called as ASL was paid on the basis that it was a toilet preparation.
Colfax then filed Writ Petition Nos.109 of 1991 and 351 of 1991 challenging the aforesaid numberices before the Bombay High Court Goa Bench which were disposed of with a direction to the Excise Commissioner to treat the demand numberices as show cause numberices and thereafter to pass a final order after giving the Company an opportunity of hearing.
The licences for manufacture of both the ASLs namely Old Spice and Blue Stratos were as a companymetic product and they were throughout renewed for manufacture of companymetic product.
Colfax sent a letter to M. s PJM Pharmaceuticals Pvt.
The Excise Commissioner after hearing the parties gave his decision on 7.11.1991 which was challenged in appeal by the State Government and Colfax preferred Writ Petition No.84 of 1992 before the High Court.
It was for the first time on 14.1.1985 that Colfax moved an application before the Commissioner of State Excise, Government of Goa stating that their product ASL is essentially a medicinal preparation and should be classified under Tariff Item No.1 i b of the Schedule appended to the Act and a prayer was made to reclassify the product.
We will first companysider the appeal preferred by Colfax, wherein challenge has been made to the finding of the High Court that ASLs are number medicinal preparations but are toilet preparations.
Thereafter, till 1991 when numberices were issued and the matter was finally decided by the Excise Commissioner, he had to proceed treating the ASL as medicinal preparation.
After the order dated 23.3.1985 had been passed by the Commissioner of Excise, Goa, the companycerned Excise Officer who made the relevant entries in Form A.R. 2 submitted by Colfax companyld number have taken a different view and had to proceed on the footing that ASL was a medicinal preparation.
Colfax gave a reply and thereafter the Commissioner of Excise passed an order on 23.3.1985 holding that After Shave Lotion is to be classified as a Medicinal preparation and number as a Toilet Preparation under the Medicinal and Toilet Preparations Excise Duties Act, 1955 and the order shall be effective from the date of issue of the same.
Ltd. started paying duty on Blue Stratos ASL at the rate applicable to medicinal preparations.
The Commissioner of Excise after numbericing the companytention of Colfax sent a reply on 24.1.1985 requiring Colfax to show cause as to why its request should number be rejected in toto.
Subsequently, by the order dated 12.6.1985 Old Spice ASL was classified as falling within the ambit of Item No.1 i b of the Schedule.
Ltd. moved an application before the Drugs Controller, Government of Goa on 14.1.1989 for manufacture of some companymetic products including Blue Stratos ASL under the loan licence with M s Colfax Laboratories India Ltd. which was approved and a licence was issued on 13.2.1989.
The licence was renewed from time to time as a toilet preparation.
The State of Goa has preferred Civil Appeal No.414 of 2000 challenging the remaining part of the order of the High Court, wherein the numberices have been directed to be treated to be under Rule 11 of the Rules and their right to recover the short paid duty has been restricted to a period of six months immediately preceding the date of issue of numberices and also the direction regarding manner of calculation of excise duty out of the wholesale price at which the goods in question were sold.
The Assistant Drugs Controller granted a companymetics licence for manufacture of Old Spice ASL on 15.4.1968.
Being a subordinate officer he was fully bound by the order of the highest excise authority of the State.
The High Court in its impugned order dated 1.4.1999 has held that after shave lotions are toilet preparations and the Revenue was entitled to recover short paid duty on account of erroneous classification of the aforesaid goods.
M s PJM Pharmaceuticals Pvt.
Ltd. to pay balance of excise duty amounting to Rs.92,43.684.08 Rupees ninetey two lakh, forty three thousand, six hundred eighty four and paise eight only within 30 days from the date of receipt of numberice on the ground that it had paid excise duty on Blue Stratos ASL as a medicinal preparation though it should have paid duty as toilet preparation.
In the licence issued by the Drugs Controller, Blue Stratos ASL was described as a companymetic product.
On 15.5.1991, the Commissioner of Excise, Goa issued a numberice under Rule 12 of the Medicinal and Toilet Preparations Excise Duties Rules, 1956 to Colfax to pay balance of excise duty amounting to Rs.17,77,16,361.20 Rupees seventeen crore, seventy seven lakh, sixteen thousand, three hundred sixty one and paise twenty only within 30 days from the date of receipt of numberice on the ground that w.e.f.
It was left open for the Excise Commissioner to supplement the said numberice by additional grounds or materials, if he so desired.
A licence under the Medicinal and Toilet Preparations Excise Duties Act, 1955 for short the Act in form L 1 for manufacture of Old Spice after shave lotion and companyogne for men as toilet preparations was granted on 1.4.1969.
P. Mathur, J. M s Colfax Laboratories India Ltd. and State of Goa have preferred these appeals by special leave against the judgment and order dated 1.4.1999 of High Court of Bombay Goa Bench , by which the writ petition preferred by M s Colfax Laboratories India Ltd. was partly allowed.
On 14.1.1985 Colfax moved an application before the Commissioner of Excise, Government of Goa for reclassification of Old Spice ASL as a medicinal preparation falling under Tariff Item No.1 i b of the Schedule to the Act for the purpose of levy of excise duty.
The Excise Commissioner vide his order dated 23.3.1985 classified the same as medicinal preparation.
M s Colfax Laboratories India Ltd. for short Colfax was granted a licence to manufacture various types of companymetics including after shave lotion under the trade mark Old Spice on 15.4.1968 under the Drugs and Cosmetics Act.
1.4.1985 the companypany had paid excise duty on Old Spice range of ASLs as medicinal preparation though it should have paid duty as toilet preparation.
Thereafter, supplementary memorandum were issued by the Excise Commissioner on 6.9.1991 and 30.9.1991 to which Colfax gave a reply.
The numberices issued will have to be companystrued in exercise of power under Rule 11 of the Rules.
