TaxTMI 
TaxTMI 
1997 (7) TMI 474
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....partment of Industry and duly licensed by the Directorate of Indian System of Medicine and Homoeopathy, Bangalore has been manufacturing and clearing "MUKTA CHAMAK" powder without obtaining Central Excise licence, without observing Central Excise procedure and without paying Central Excise duty. Officers of the Headquarter, Preventive Unit, paid a surprise visit to the factory, verified the records and recorded the statement of Shri V.R. Joshi, Managing Director of the appellant and Shri M. P. Kajrekar, a share-holder of the appellant and an Ayurvedic Physician. Show cause notice dated 9-12-1994 was issued to the appellant alleging that the product is "tooth powder" falling under Chapter Heading 3306 of 1985 Tariff and not "Ayurvedic Medici....
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....lty of Rs. 8000.00. 5. The table to Notification No. 32/59 contains eight serial numbers. As against serial No. (8) column No. (2) refers to sub-heading 3003.30 of the tariff. Column No. (3) refers to the rate as "Nil". The Notification exempts goods falling under sub-heading numbers specified in column (2) from so much of that portion of the duty leviable thereon as is in excess of the amount calculated at the rate specified in the corresponding entry in column (3). If the subject goods attract sub-heading 3003.30, there is complete exemption from payment of duty. It is in this context that the appellant contends that the "MUKTA CHAMAK" powder attracts sub-heading 3003.30. 6. Chapter sub-heading 3003.30 takes in the followi....
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....kti powder and teeth enamel. Camphor reduces the stains and overcomes lack of circulation in the mouth. He also stated that the product is not for oral or dental hygiene because it has special therapeutic value and is to be used only as indicated. It is unlike "DANTA MANJAN LAL" manufactured by M/s Baidyanath Ayurved Bhawan which is used daily for oral and dental hygiene. The Commissioner overcame this evidence relying on note to Chapter 33 of the tariff. He also relied on literature which claimed the product to be "teeth whitener" and the SSI Certificate which refers the product as "tooth powder". 9. In Shree Baidyanath Ayurved Bhawan Ltd., Nagpur v. Collector of Central Excise, Nagpur - 1985 (22) E.L.T. 175 (Tribunal), the questio....
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....idered as a toilet article. The Tribunal referred to the observations in Encylopaedia of Chemical Technology, New York, Vol. 4 at pages 928-930 to the effect that although manufacturers of dentifrices claim ability to prevent dental decay and treatment of pyorrhea, the fact remains that dentifrices may be expected to perform only the principal function, the cleansing of teeth. Though some of the ingredients may have therapeutic properties in pharmacopial books, the compound "Dant Manjan" cannot be said to have curative power so as to make it effective for treatment of ailments. The ingredients themselves are not treated as medicines in common parlance though they may have been mentioned in Ayurvedic reference books. The certificates relied ....
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....nciples in concluding the product in question was not a medicament preparation (Ayurvedic) and, therefore, the appellant was not entitled to the benefit of the exemption notification." 11. The SSI Certificate issued to the appellant describes the product as "Ayurvedic tooth powder". The literature of the appellant emphasises the usefulness of the product as "teeth whitener" and "stain remover". There is no evidence that the product is prescribed by medical practitioners as medicine to cure any disease. The ingredients may have therapeutic relevance but that does not make the product curative in common parlance. Once the product is accepted to be "tooth whitener" and "stain remover", it has to be regarded as a toilet preparation or d....
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.... manufactured by the appellant is tooth powder falling under Tariff Heading 33.06 and not Ayurvedic medicine falling under Tariff sub-heading 3003.10 and the appellant is not entitled to the benefit of the Notification No. 32/89. 14. It is finally contended that the show cause notice is barred by time. The period of demand was 1989-90. Show cause notice was issued on 9-12-1994. The charge was manufacture of excisable goods without obtaining Central Excise licence or following Central Excise procedure and without paying duty payable, without issuing gate passes and without accounting involving violation of Rules 174, 9(1), 52A, 53, 173B, 173C and 173G of the Central Excise Rules, 1944. It was alleged that the appellant suppressed the....