SHARP MENTHOL INDIA LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The Petitioner manufactures Menthol Crystals BP/USP, Menthol BP, Menthol USP, Dementholised Oil, Liquid Menthol, Double rectified Peppermint Oil, Mint Flavours all of which are excisable goods. The inputs purchased by the Petitioner and used in the manufacture of the aforementioned excisable goods include Dementholised Oil (DMO) and Menthol. The Petitioner states that it has exported its final products, manufactured by using the excise duty paid inputs, to certain notified countries and is, therefore, eligible for grant of rebate of the whole of the excisable duty paid in terms of a Notification dated 6-9-2004

(2.) The Petitioner's case is that in regard to these two inputs which had been procured and utilised by the Petitioner in the manufacture of Menthol crystals and Peppermint Oil in the month of February and March, 2006, the Petitioner is entitled to excise duty rebate aggregating to a sum of Rs. 15.97 crores. In respect of the other goods, viz., Menthol BP/Menthol USP, Essential Oil Mint Blend, Flavouring Materials, Mint Blend and Liquid Menthol, the Petitioner claims excise duty rebate in the sum of Rs. 7.48 crores. It is further submitted that the Petitioner filed its rebate claim applications before the authorities on 27-3-2006 and 10-4-2006.

(3.) While no action was taken on these applications, the Respondents, on 23-6-2006 and 6-7-2006 issued to the Petitioner show cause notices alleging that the process adopted by it does not amount to manufacture and hence the rebate claims were not admissible. These SCNs pertain to only some of the final products, i.e., Menthol BP/Menthol USP, Essential Oil Mint Blend, Flavouring materials Mint Blend and Liquid Menthol.