TWENTY FIRST CENTURY Vs. CCE

JUDGEMENT

(1.) THIS is an appeal against the Order -in -Appeal No. 124/98 dated 31.3.1998 passed by the Commissioner (Appeals) wherein the question of excisability and classification of "Multinal Tablets" was considered and the Order -in -Original was upheld, which had classified the product under heading 3003.10. However, while the excisability of the product was upheld, the Order -in -Appeal changed the classification from Chapter 30 to 21. It also reduced the penalty from Rs. 5000/ - to Rs. 2000/ -, but held the product to be dutiable.

(2.) HEARD Shri N. Venkatraman, learned advocate for the appellants, who submits as follows:

(3.) LEARNED D.R. Shri S. Kannan, on the other hand, stresses that when the spirulina powder is changed into tablet, it becomes a new commercial commodity. He further draws our attention to the comments of the Revenue dated 9.7.1999 addressed to the D.R. on the aforementioned affidavit that this physical change from powder to tablet form is not only a complete physical change but the properties of ingredients have also changed by this tablet, as can be seen from the composition of powder vis -a -vis tablets submitted by the appellants themselves in the analysis report of M/s. SGS. He also relies on the decision of the Tribunal in the case of Indian Cable Co. Ltd. v. CCE as , wherein conversion of PVC resin into PVC compound has been held to manufacture. The learned D.R. is at pains to submit that in the tablet form the protein content of the product reduced from 64.31% to 51.76% while there is variation in carbohydrate, moisture, calcium etc. and therefore, a new product comes into existence. He also submits that the product is known in the market as Multinal tablets and not as spirulina.