Shikakai powder classification turns on whether processing amounts to manufacture; matter remanded after later Supreme Court clarification.

Shikakai powder's classification under Chapter Heading 33.05 of the Central Excise Tariff, and whether it was excisable goods at all, had to be reconsidered in light of a later Supreme Court clarification that mere conversion of shikakai pods into powder may not amount to manufacture and that the result depends on the actual activity undertaken. The tribunal noted that the Supreme Court had confined its order to the period January 1999 to March 1999 and had not disturbed the earlier position for prior periods. Because that clarification post-dated the impugned order, the matter required fresh examination by the adjudicating authority. The impugned order was set aside and the matter remanded for de novo adjudication.

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Issues: Whether shikakai powder is classifiable under Chapter Heading 33.05 of the First Schedule to the Central Excise Tariff Act, 1985, or whether it is not excisable goods liable to duty.

Analysis: The classification dispute had to be examined in the light of the Supreme Court's subsequent clarification that mere conversion of shikakai pods into powder may not amount to manufacture and that the result would depend on the actual activity undertaken. The Court noted that the Supreme Court had confined its order to the period January 1999 to March 1999 and had left the earlier position undisturbed for prior periods. Since this clarification was rendered after the impugned order, the matter required fresh consideration by the adjudicating authority on the basis of the later Supreme Court ruling.

Conclusion: The impugned order was set aside and the matter was remanded for fresh adjudication.

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