AMERICAN REMEDIES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) EXAMINED the records and heard both sides. It appears from the records and the submissions that two issues arise for consideration in this case : (a) whether conversion of Spirulina Powder into Tablet form amounts to manufacture (b) whether Spirulina Tablet is classifiable under Chapter 12 of the CETA Schedule or under Chapter 21 of the said Schedule. In the impugned order, learned Commissioner (Appeals) answered the first question in the affirmative and classified the appellants' product viz. Spirulina Tablets under SH 2108.99 as claimed by the Revenue. Hence the present appeal.

(2.) IT has been submitted by learned Counsel for the appellants that, in the case of Commissioner v. Twenty First Century Pharmaceuticals Pvt. Ltd., 2000 (126) E.L.T. 694, it was held by this Tribunal that the conversion of Spirulina Powder into Tablet form did not amount to manufacture. Counsel has also pointed out that the Civil Appeal filed by the department against the said decision of the Tribunal was dismissed by the Supreme Court vide 2003 (158) E.L.T. A222. Now that the conversion of Spirulina Powder into Tablet form does not amount to "manufacture" within the meaning of Section 2(f) of the Central Excise Act, it is not necessary for us to address the classification issue. In this context, it needs to be mentioned that, in the case of Sanat Products Ltd. v. Commissioner, 2000 (115) E.L.T. 163 (Tri.) affirmed by the Apex Court vide 2000 (121) E.L.T. A225, Spirulina Capsule was held to be a non -excisable natural product covered under Chapter 12.

(3.) IN view of the above case law, we set aside the demand of duty raised on the appellants by the Revenue in respect of Spirulina tablets. The impugned order is set aside and the appeal is allowed.