COMMISSIONER OF C. EX. Vs. PEE GEE PHARMA

JUDGEMENT

(1.) THE Revenue by these appeals challenge the Orders -in -Appeal No. 135/2001 -(CBE)(GV.) and No. 136/2001 -(CBE)(GCN) both dated 21 -6 -2001 passed by the Commissioner, Central Excise (Appeals).

(2.) AFTER hearing both sides the operative portion of the order rejecting the Revenue appeals was pronounced in the open Court on 5 -3 -2003.

(3.) THE brief facts of the case are that the respondents are manufacturers of Krithika Hair Vitaliser, Saagar Capsules, Saagar Cream, Nimizyne Capsules. Krithika Hair Vitaliser and Saagar Capsules are manufactured by them on job work basis for M/s. Mothi Pharma Pvt. Ltd. who supply the various siddha ingredients to them free of cost while the other items are manufactured out of their own raw materials and sold to M/s. Mothi Pharma Pvt. Ltd. In the month of January, 1998 the officers of the DRI visited the factory premises of the assessee as well as M/s. Mothi Pharma Pvt. Ltd. and according to them the product Krithika Hair Vitaliser was a cosmetic preparation falling under Chapter 3305.10 as against the one claimed by the party under sub -heading 3003.39, and the other items were siddha medicaments. As a follow up action proceedings were initiated against the respondents by issue of show cause notice which culminated in the order of adjudication passed by the Additional Commissioner of Central Excise, where -by he has classified Krithika Hair Vitaliser and Saagar Capsules under heading 3003.10 and demanded duty under Rule 9(2) read with Sub -sections (1) and (2) of Section 11A of the CE Act, 1944 and also imposed penalty under various provisions of Central Excise Rules and also under Section 11AC of the CE Act, 1944. He has also ordered confiscation of the plant and machinery with option to redeem the same on payment of fine of Rs. 5,000/ -. He has also demanded interest under Section 11AB of the Act.