1991 (2) TMI 355 - AT - Central Excise

Tribunal overturns Collector's order on excisability of products under Tariff Item 68

The Tribunal set aside the Collector's order, allowing the appeal challenging the excisability of certain products under Tariff Item 68. The decision was ... ‘Alcohol all sorts’ Issues:1. Challenge to the order passed by the Collector of Central Excise (Appeals), Bombay regarding excisability of certain products.2. Interpretation of Tariff Item 68 of the Central Excises and Salt Act, 1944.3. Applicability of previous judgments and circulars in determining excisability of the products.4. Acceptance of the decision by the Government of India regarding the classification of the goods in question.Issue 1: Challenge to the order passed by the Collector of Central Excise (Appeals), BombayThe appellants challenged the order passed by the Collector of Central Excise (Appeals), Bombay, which allowed the EA-2 application filed under Section 35E(4) of the Central Excises and Salt Act, 1944 by the Assistant Collector of Central Excise, Bombay. The Collector held that the products in question are excisable and classifiable under Tariff Item 68 of the Act. The Assistant Collector's order, which initially held the products to be non-excisable, was set aside by the Collector, allowing the Revenue's appeal.Issue 2: Interpretation of Tariff Item 68The Collector interpreted Tariff Item 68, which excludes 'Alcohol all sorts, including alcoholic liquor for human consumption.' The Collector agreed with the chemical examiner's report, stating that the impugned products do not fall under the definition of 'Alcohol' as per the Medicinal and Toilet Preparations (Excise Duties) Act, 1955. The Collector emphasized that the term 'Alcohol all sorts' refers to specific types of alcohols defined in the Act, excluding the alcohol derivatives produced by the appellants. The Collector concluded that the impugned products are excisable under Tariff Item 68.Issue 3: Applicability of previous judgments and circularsThe appellants relied on a judgment of the Bombay High Court and contended that the products in question are not covered by any Tariff Items 1 to 67. They also referenced a circular issued by the Board in 1984, which clarified the scope of 'Alcohol all sorts' under Tariff Item 68. The Board's circular and previous judgments indicated that the items in question are not excisable and are excluded from Tariff Item 68, supporting the appellants' contention against the Collector's order.Issue 4: Acceptance of the decision by the Government of IndiaThe Government of India accepted the decision given by the Bombay High Court and did not prefer an appeal to the Supreme Court regarding the classification of the goods in question. The acceptance of previous decisions and circulars by the Government further supported the appellants' position, leading to the setting aside of the impugned order and allowing the appeal without any delay in filing.In conclusion, the Tribunal set aside the Collector's order, allowing the appeal based on the interpretation of Tariff Item 68, previous judgments, circulars, and the acceptance of the decision by the Government of India.