M/s. Naturalle Health Products (P) Ltd. VS. Collector Of Central Excise, Hyderabad

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M/s. Naturalle Health Products (P) Ltd. VS. Collector Of Central Excise, Hyderabad

CASE NO.: Appeal (civil) 2072 of 1996 Appeal (civil) 10744 of 1996

PETITIONER: M/s. Naturalle Health Products (P) Ltd.

RESPONDENT: Collector of Central Excise, Hyderabad

DATE OF JUDGMENT: 11/11/2003

BENCH: P. Venkatarama Reddi & Dr. AR. Lakshmanan

JUDGMENT: J U D G M E N T Dr. AR. Lakshmanan,J.

The points involved in both the appeals are one and the same and, therefore, they were heard together by consent of parties.

The issue involved in Civil Appeal No. 2072 of 1996 is: Whether or not medicated cough drops and throat drops manufactured by the appellants in accordance with and under the licence issued under the Drugs and Cosmetics Act, 1940 for the manufacture of "Ayurvedic Drugs" are classifiable as Ayurvedic Medicaments for the purpose of levy of central excise duty.

The issue for determination in Civil Appeal No. 10744 of 1996 is: Whether the products "Sloan's Balm" and "Sloan's Rub" are ayurvedic medicines and are classifiable under Chapter Heading 3003-30 as contended by the appellants attracting nil rate duty OR Classified under Chapter sub-heading 3003.10 chargeable to duty at 15% ad valorem.

The facts briefly stated in Civil Appeal No. 2072 of 1996 leading to the filing of this appeal are as under:- The appellants - M/s Naturalle Health Products (P) Limited, Hyderabad filed the classification list as required under Rule 173-B of the Central Excise Rules, 1944 with the Assistant Collector of Central Excise claiming classification of their goods under sub-heading 3003.30 read with erstwhile notification No. 32/89-CE dated 01.03.1989.

The appellants were issued a loan licence to manufacture for sale of Ayurvedic drugs under the Drugs and Cosmetics Act, 1940 and the said loan licence was renewed from time to time. A show-cause notice was issued by the Assistant Collector of Central Excise calling upon the appellants to show cause why the said goods should not be classified as Patent or Proprietary Medicaments under sub-heading 3003.10 of Central Excise Tariff attracting excise duty at the rate of 15% ad valorem. The appellants replied to the show-cause notice and denied that the said goods are not Ayurvedic Medicaments and submitted that the grounds raised in the show-cause notice were not relevant for determining the classification of the goods. The Assistant Collector, after giving a perso...

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