COMMISSIONER OF CENTRAL EXCISE, Vs. AJMER FOOD INDUSTRIES

JUDGEMENT

(1.) The issue involved is whether the item 'gulkand' is classifiable under Chapter Heading 3003 as Medicament or under Chapter 2001 as Food products.

(2.) We have heard Shri Ashok Mehta, SDR for the revenue and Ms. Reena Khair, Advocate for the respondents and have carefully considered the submissions made by both the sides and perused the records.

(3.) Briefly, the facts of the case are that M/s. Ajmer Food Industries, Indore, are engaged in the production of 'gulkand' which is sold in the brand name 'Super Tower Gulkand'. The practice followed is that the Respondent is receiving gulkand in bulk quantity from their Head Office located at Ajmer (Rajasthan) and the bulk quantity so received is repacked in unit container after adding very negligible quantity of Sodium Benzaite (Preservative) and the same thereafter is labelled with the brand name "Super Tower Gulkand". The respondents filed their initial declaration on 12.4.94 claiming under Chapter Heading 3003.30 of the Central Excise Tariff Act, 1985 being branded Ayurvedic medicine as per Notification No. 75/94 dated 29.3.94. The said Notification now stands rescinded. The respondent submitted a revised declaration on 20.5.94 declaring their product 'gulkand' under Chapter Heading No. 2001.10 claiming full exemption of Notification No. 2/94 dated 1.3.94.