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central excise tariff

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The Central Excise Tariff Act, 1985 (hereinafter referred to as ‘CETA’) under Chapter 30 of the Schedule (2) deals with pharmaceutical products for the purposes of tariff. At the relevant time, if a product is held to be medicament, then, the rate of duty was 15% and, if not, 70%. Heading 30.03 deals with the medicaments including veterinary medicaments. – ‘Care or cure’, is the clue for the resolution of the lis arising in these cases. If the product by name ‘Moisturex’ is held to be a medicament for cure, the decision goes in favour of the assessee and if the product is held to be one for care of the skin, the decision benefits the Central Excise. The Tribunal has held in favour of the assessee and, thus, the Central Excise is in appeals.= In the case of ‘Moisturex’, there is no dispute that the said cream is prescribed by the dermatologist for treating the dry skin conditions and that the same is also available in chemist or pharmaceutical shops in the market. The cream is not primarily intended for protection of skin. The ingredients in the cream, the pharmaceutical substances do show that it is used for prophylactic and therapeutic purposes. The Central Excise Tariff Act has unambiguously clarified as to what is a medicament for curing an ailment relating to skin. Heading 33.04 dealing with beauty or make-up preparations and preparations for the care of the skin has specifically excluded medicaments. There is also an indication under the same entry that medicinal preparations used to treat certain complaints are to be provided under the Heading 30.03 (medicaments) or 30.04 (products containing pharmaceutical substances used for medical, surgical, dental or veterinary purpose). 21. Tribunals, the Customs, Excise and Gold (Control) Appellate Tribunal,West Zonal Bench at Mumbai in the first case and Customs, Excise and Service Tax Appellate Tribunal, West Zonal Bench at Mumbai in the other, having regard to the pharmaceutical constituents present in the cream ‘Moisturex’ and its use for the cure of certain skin diseases, have rightly held that the same is a medicament liable to be classified under the Heading 30.03 (medicament). Thus, there is no merit in these appeals. They are accordingly dismissed. No costs.

  published in http://judis.nic.in/supremecourt/filename=40649 IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 6988 OF 2003 Commissioner of Central Excise, Mumbai IV … Appellant (s) Versus M/s. Ciens Laboratories, Mumbai … Respondent (s) WITH CIVIL APPEAL NO. 4434 OF 2004 Commissioner of Central Excise, Thane-II … Appellant (s) Versus M/s. Time Pharma, Mumbai … … Continue reading

whether the goods manufactured by the appellant are liable to be taxed as ‘Parts of Television Receivers’ falling under Tariff Entry 8529 of the Central Excise Tariff contained in the First Schedule to the Central Excise Tariff Act, 1985 (in short ‘the Tariff’) or as ‘Television Receivers’ under Tariff Entry 8528 of the Tariff, for the year 1989-90. -how the goods transported by them shall not be covered by the Rule, especially as a complete or finished article, ‘presented unassembled or disassembled’. The terminology of the Rule is wide enough to cover the goods transported by the appellant, and we are not convinced that the processes required to be carried out at the satellite units are so vital to the manufacture of the Television Receivers so as to render the goods transported by the appellant lacking the ‘essential character’ of Television Receivers. Rule 2(a) of the Rules for Interpretation has been couched in wide terms, and in terms of this Rule, it is our view that the goods produced by the appellant do in fact possess the essential character of Television Receivers.The appellant had also raised the plea of double-taxation; however, in our view once the question of classification of the goods transported by the appellant has been answered in the above manner, it is not open to us to grant the appellant any relief on this ground alone. Further, it is always open to the satellite units of the appellant to avail input tax credit on the duty paid by the appellant on the goods transported by them. 32. In view of the facts stated hereinabove, we are of the view that the Tribunal did not commit any error while passing the impugned order and, therefore, the appeal is dismissed with no order as to costs.

REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 4427 OF 2003 M/S Salora International Ltd. Appellant Vs. Commissioner of Central Excise, New Delhi Respondent J U D G M E N T ANIL R. DAVE, J 1. The challenge in this appeal is to an order dated 1st April, 2003 … Continue reading

Dismissing the appeals, the Court HELD: 1. The object of providing concessional rate of duty, on the kerosene used for illuminating oil burning lamps, was to provide some relief to those economically backward sections of society who use kerosene for illumination and other domestic purposes and, therefore, the benefit of concessional rate of duty was available only on the kerosene cleared by the assessee to the Public Distribution System. [Para 13] [366-C] 2. In the light of the object and context of the notifications, it becomes abundantly clear that the word “ordinarily” used in the Notifications implies that the kerosene must be ordinarily used for illumination purposes, and it would be immaterial if the kerosene is also used for other domestic purposes. [Para 16] [367-B] Commissioner of Customs, Mumbai vs. J.D. Orgochem Ltd. (2008) 16 SCC 576; Viswa and Co. vs. The State of Gujarat (1966) 17 S.T.C. 581 – referred to. 3. From the perusal of the two Notifications, it is plain that the benefit of concessional rate of duty extends only to that variety of kerosene that: (i) has a smoke point of 18mm or more, and (ii) is ordinarily used as an illuminant in oil burning lamps. It is manifest that these two conditions are conjunctive and, therefore, the twin conditions need to be satisfied in order to avail of the concessional rate of duty. In the instant case, the fact that the assessee cleared kerosene manufactured by it to industrial consumers would entail that the assessee cannot claim the benefit of Notifications No. 5/98-CE and 5/99-CE. [Para 17] [367-C-D] Union of India and Anr. vs. Hemraj Singh Chauhan and Ors. (2010) 4 SCC 290; State of A.P. vs. V. Sarma Rao and Ors. (2007) 2 SCC 159 – relied on. Union of India and Ors. vs. Vipinchandra Hiralal Shah (1996) 6 SCC 721 – referred to. Case Law Reference: (2008) 16 SCC 576 Referred to Para 11 (1966) 17 S.T.C. 581 Referred to. Para 11 (2010) 4 SCC 290 Relied on. Para 14 (1996) 6 SCC 721 Referred to. Para 14 (2007) 2 SCC 159 Relied on. Para 15 CIVIL APPELLATE JURISDICTION : Civil Appeal No. 7041-7043 of 2002. From the Judgment & Order dated 21.01.2002 of the Central Excise & Gold (Control) Appellate Tribunal, New Delhi in Appeal No. E/682-684/2001-C. Alok Yadav, M.P. Devanath for the Appellant. P.P. Malhotra, ASG, S. Wasim A. Qadri, Ron Bastian, Anil Katiyar for the Respondent.

REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NOS. 7041-7043 OF 2002 M/S INDIAN OIL CORPORATION — APPELLANT LTD. VERSUS COMMISSIONER OF CENTRAL — RESPONDENT EXCISE, VADODARA JUDGMENT D.K. JAIN, J.: 1. These civil appeals under Section 35L(b) of the Central Excise Act, 1944 (for short “the Act) are directed against … Continue reading

whether laminated panels of particle and medium density fiber board should be classified under sub- heading no. 4406.90 and 4407.90 or under sub- heading no. 4408.90. The appellant alleged that the product manufactured by the respondent herein was classifiable under sub heading 4408.90. For this purpose the appellant relied on Chapter Note 5 of Chapter 44 of the Central Excise Tariff Act, 1985 (hereinafter referred to as `the Act’) which reads as under:- “For the purposes of heading No. 44.08, the expression “similar laminated wood” includes blockboard, laminboard and battenboard, in which the core is thick and composed of blocks, laths or battens of wood glued or otherwise joined together and surfaced with the outer plies and also panels in which the wooden core is replaced by other materials such as a layer or layers of particle board, fiberboard, wood waste glued or otherwise joined together, asbestos or cork”.

1 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.4462 OF 2003 COMMNR. OF CENTRAL EXCISE, NOIDA …..Appellant. Versus M/S. KITPLY INDUSTRIES LTD. …..Respondent WITH CIVIL APPEAL NO.9736 OF 2003 J U D G M E N T ANIL R. DAVE, J. 1. The present appeals arise out of the judgments … Continue reading

whether the cost of packing charges expended/incurred by the appellant-company is liable to be included in the assessable value of the motorcycles manufactured by the appellant-company. 3. The appellant-company, previously known as M/s. Eicher Limited – unit Royal Enfield Motors, are manufacturing motorcycles falling under Chapter 87 of the Central Excise Tariff Act, 1985. The issue relates to non-inclusion of the value of packing charges by the assessee-company in the assessable value for motorcycles despite the fact that the said motorcycles were cleared by the assessee to the dealers located outside Chennai by sending them to their various depots on stock transfer basis and in packed condition from their factory during the period from April, 1999 to December, 1999. 4. At the time of removal from the factory to depot the motorcycles were cleared in fully packed condition. It is also established from records that Rs. 190/- is being charged as packing charges by the appellant and, therefore, the said amount which was collected as packing charges must have been passed on to the buyers.

REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 4406 OF 2010 M/s. Royal Enfield (Unit of M/s. Eicher Ltd.) ….Appellant VERSUS Commissioner of Central Excise, Chennai ….Respondent JUDGMENT Dr. MUKUNDAKAM SHARMA, J. 1. By this judgment and order we propose to dispose of this appeal which is filed by the … Continue reading

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