COMMISSIONER OF CENTRAL EXCISE Vs. DABUR INDIA LTD.

JUDGEMENT

(1.) In reference to order dated 9.2.2005 passed by Customs, Excise & Service Tax Appellate Tribunal (in short 'CESTAT') in appeal No. E/4039, 4043-44/03 NB (C) arising out of the order in appeal No. 965-967/CE/CHD/2003 dated 6.10.2003, passed by Commissioner (A) Central Excise, Chandigarh, the following question has been referred by the Commissioner Central Excise, Chandigarh, for declaring the same as substantial question of law:

(2.) In order to deal the present appeal, it is necessary to give the brief facts of the case that M/s Dabur India Ltd. Baddi (hereinafter referred to as the 'PARTY') is the manufacturer of Medicaments falling under chapter 30 of the Central Excise Tariff Act, 1985. The "PARTY" has asked for the refund claim amounting to Rs. 15,73,215/-, Rs. 34,444/- and Rs. 17,433/- on the grounds that these were paid as Central Excise duty on Control samples preserved/drawn during 1999-2000, however, as per Chapter-11 of the New Excise Procedure when a manufacturer preserves/retains the samples of their product for some period for investigation of complaints, if any, no duty should be charged on these samples considering that the goods remain within the factory.

(3.) In the facts and circumstances, for success of present appeal preferred under Section 35-G of the Central Excise Rules, 1944, we have to see as whether the above question referred is really a substantial question of law or not. In order to deal with the above question, it is necessary to refer the relevant provisions of Rules 9 and 49 of the Central Excise Rules, 1944: