DABUR INDIA LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The appellant manufactures medicinal products out of herbal extracts. The questions which have arisen in this appeal, inter alia, are whether the extracts were goods for the purpose of the Central Excise Act and if so, whether they were classifiable under Ch. 13 or 30 of the Act.

(2.) The appellant carries on its business both in West Bengal as well as in Uttar Pradesh. Demands were raised in respect of the period 1.8.1990 to 28.2.1994 by Revenue Authorities in both the States on the basis that the herbal extracts were leviable to excise duty under Ch. 13. As far as West Bengal was concerned, the relevant entries were construed by the Commissioner and it was held that the goods were properly classifiable under Ch. 30 under Tariff Item 30.03. The rate of duty at that point of time was nil. He accordingly dropped the proceedings.

(3.) As far as Uttar Pradesh was concerned, however, the Commissioner decided the proceedings against the appellant holding that the extracts were properly classifiable under Ch. 13. The appellant's further appeal to the Tribunal from this decision was rejected and that is the order impugned before us.