Exemption notification covered heena products for the disputed period, so duty, interest and penalty could not survive.

Heena Powder, Heena Dye Powder and Heena Cone (paste) were examined against the applicable exemption notification for the period 01.08.2008 to 01.11.2011. The goods were treated as classifiable under Chapter 33 of the Central Excise Tariff Act, and the notification was found to cover the disputed period. As a result, the confirmed demand of duty, interest and penalty could not be sustained, and the demand was set aside in favour of the assessee.

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Issues: Whether the demand of duty, interest and penalty on Heena Powder, Heena Dye Powder and Heena Cone (paste) was sustainable in view of the exemption notification covering the relevant period.

Analysis: The subject goods were held to fall under Chapter 33 of the First Schedule to the Central Excise Tariff Act, 1985, and the relevant exemption notification was found to cover the disputed period from 01.08.2008 to 01.11.2011. On that basis, the demand confirmed in the impugned order could not survive.

Conclusion: The duty demand, interest and penalty were set aside and the appeal was allowed in favour of the assessee.

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