Sub Heading No, Description of Goods Rate of Duty 1 2 3 4 13.01 1301.10 1301.90 Lac, gums, Resins and other vegetable saps and extracts Lac Other Nil The Revenue s companytention that the extracts in question were properly classifiable under 1301.90 and duty was leviable on the applicant under the Act in respect of the extracts at 15.
But, the mainstay of the appellants argument is a circular which has been issued by the Central Board of Excise and Customs CBEC under Section 37B of the Act by which the Board has issued a clarification in respect of liquid vegetable extracts obtained in the manufacture of Ayurvedic medicines.
The Circular clarified That liquid vegetable extracts unless subjected to fermentation or other preservative processes are number liable to be companysidered as goods attracting the scope of excise levy.
The relevant entries in Chapter 13 are reproduced below CHAPTER 13 LAC, GUMS, RESINS AND OTHER VEGETABLE SAPS AND EXTRACTS Heading No.
The appellant manufactures medicinal products out of herbal extracts.
As far as Uttar Pradesh was companycerned however, the Commissioner decided the proceedings against the appellant holding that the extracts were properly classifiable under Chapter 13.
The Entry on which reliance has been placed by the appellant is 3003.30.
