MAKJAI LABORATORIES Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) HEARD both sides.

(2.) The Appellants manufacture excisable 'P or P medicines' falling under sub -heading 3003.10 of the Central Excise Tariff. In addition, they manufacture the impugned goods, namely, Waterbury's Compound, Listerine Mouthwash and Coolmint Listerine Mouthwash on job work basis for M/s. Pfizer Ltd. The impugned goods contain alcohol and are hence not excisable under the Central Excise Act, 1944. However, they are chargeable to duty under the Medicinal & Toilet Preparations (Excise Duties) Act, 1955 (MTPA). Duty under the MTPA is levied by the Central Government but collected and appropriated by the State Governments.

(3.) THE dispute in this case is as to whether manufacture of the impugned goods containing alcohol attracts service tax under the Finance Act, 1994 under 'Business Auxiliary Service'. The period in dispute is from August, 2006 to September, 2008.