Burden of proof in tariff classification defeated excise demand where no evidence supported treatment of gulabjal as toilet water.

Gulabjal marketed as "Gulabari" was not established as toilet water under Heading 33.03 of the Central Excise Tariff Act because the Revenue adduced no chemical test report or other evidence to support its classification, and the show cause notice gave no reasons for that treatment. The burden to prove classification under Heading 33.03 remained undischarged, so the central excise duty demand was set aside. The Department was left free to pursue the correct classification in appropriate proceedings.

---

---

Issues: Whether Gulabjal manufactured and marketed as "Gulabari" was classifiable under Heading 33.03 of the Central Excise Tariff Act, and whether the demand of central excise duty could be sustained.

Analysis: The dispute turned on the Revenue's assertion that the product was toilet water. The record contained no chemical test report showing the composition of the goods, and no evidence was adduced to substantiate the Department's stand. The show cause notice also did not set out reasons for treating the product as toilet water. On the materials before it, the burden to establish classification under Heading 33.03 remained undischarged.

Conclusion: The product was held not classifiable under Heading 33.03 of the Central Excise Tariff Act, and the demand of central excise duty was set aside. The Department was left free to determine the correct classification in appropriate proceedings.

---