Binding excise circulars govern Ayurvedic exemption claims; certification is required before authorities can grant relief.

An Ayurvedic cough syrup containing preservatives of allopathic origin was treated as potentially eligible for excise exemption only if it satisfied the Board's conditions: manufacture according to authoritative Ayurvedic texts and addition of ingredients with no therapeutic value. The Board's circular was binding on subordinate excise authorities, and exemption had to be considered on the basis of the prescribed certificate submitted by the manufacturer. The writ court's unconditional grant of exemption was set aside, and the matter was remitted to the authorities for decision in accordance with law.

---

---

Issues: Whether the cough syrup claimed as an Ayurvedic preparation was entitled to exemption from excise duty despite containing preservatives of allopathic origin, and whether the appellate court should interfere with the writ court's grant of exemption.

Analysis: The preparation was treated as falling within the excise exemption only if it satisfied the conditions later clarified by the Board, namely that it was manufactured according to authoritative Ayurvedic texts and that any added ingredients had no therapeutic value. The Board's circular specifically stated that exemption should not be denied in such cases and that pending matters should be disposed of accordingly. The circular issued by the Central Board of Excise and Customs was binding on subordinate authorities, and the proper course was for the manufacturer to obtain the prescribed certificate and place it before the assessing authority for relief in accordance with law.

Conclusion: The writ court's order granting unconditional exemption was set aside. The respondent was required to obtain the certificate contemplated by the Board's circular and submit it to the authorities, who would then consider exemption in accordance with law. The appeal succeeded.

Final Conclusion: Exemption for the Ayurvedic preparation was not finally and unconditionally upheld on the writ court's reasoning, and the matter was redirected to the statutory authorities to act on the binding circular and the prescribed certification process.

Ratio Decidendi: A binding departmental circular governing exemption for Ayurvedic medicines containing non-therapeutic preservatives must be followed by subordinate excise authorities, and exemption is to be considered on the basis of the prescribed certification rather than on an unconditional writ determination.

---