DABUR INDIA LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) In these three appeals, filed by M/s. Dabur India Ltd., the issue involved is whether processes undertaken by them in respect of 'Keora Water' purchased from the market amounts to manufacture.

(2.) Shri B.L. Narasimhan, learned Advocate, submitted that the appellants purchased keora water from various suppliers, which contains various undesirable impurities; that, therefore, they subject keora water to filtration and purification for the purpose of removing the impurities; that, thereafter, they packed keora water in smaller containers and sell as keora water only; that as there is no change in the name, character or use of the keora water received and the keora water re -packed and sold by them, the processes undertaken by them do not amount to manufacture and as such no Central Excise duty is payable by them; that the Revenue has classified keora water under Heading 33.03 of the Schedule to the Central Excise Tariff Act on the ground that the impugned product, after purification, becomes fit for human consumption and is marketed in a small container for use as perfumery for food and toilet preparations and even in the common parlance it is not known as essential oil. The learned Advocate, further, submitted that they do not undertake any activity amounting to manufacture by the process of distillation for removal of impurities and placed reliance on the following decisions :

(3.) Learned Advocate also contended that keora water is essential oil of aqueous distillate and is classifiable under Heading 33.01 of the Tariff; that the show cause notice and the Order -in -Original admit the factual position that the keora water is an aqueous distillate of essential oil; that, according to the Explanatory Notes to HSN, essential oils and extracted oleoresins of Heading 33.01 are all extracted from plant materials; that HSN Explanatory Notes also laid down that essential oils which serve as raw materials in the perfumery, food and other industries are of vegetable origin and remain classifiable under Heading 33.01 of the Tariff whether or not their fragrance has been modified by removal of their terpners; that this keora water, which is an aqueous distillate of essential oil rightly merits classification under Heading 33.01 and consequently, Note 4 to Chapter 33 of the Tariff would not be applicable. He, finally, mentioned that Note 2 to Chapter 33 clearly excludes aqueous distillates and aqueous solutions of essential oils from the purview of Heading Nos. 33.03 to 33.07; that, therefore, keora water cannot be classified under Heading 33.03.