TaxTMI 
TaxTMI 
2007 (5) TMI 373
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....y and hence they were issued with show cause notices demanding duty for the various, periods for the concerned activity and treating the resultant shigekai power as excisable product. The Hon'ble High Court of Karnataka in Writ Appeal No. 1413-1736/98 [1999 (111) E.L.T. 27 (Kar.)] had decided the issue in revenue's favour. The matter was taken up before the Apex Court and the Apex Court in Civil Appeal No. 8608/01 in the case of Shri Ramakrishna Soap Nut Works v. Superintendent of Central Excise and others by their order dated 28th February 07 [2007 (210) E.L.T. 332 (S.C.)] has set aside the division Bench Judgment of the Hon'ble Karnataka High Court. The Hon'ble Apex Court has noted that the appeals of the assessee's were pending before the CESTAT and therefore, the matter is required to be decided by the CESTAT on merits. It has also observed that the order of the Apex Court is for the period from January 99 to March 99 onwards and the appellant assessee would not be entitled to claim refund/retain the assessments for periods prior to Jan 99. It has also held that for the period prior to January 99, the earlier judgment of the Hon'ble Karnataka High Court shall continue to ....
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.... 3305.99 and therefore it is not an excisable commodity. Seeakkai is a natural product and it is crushed into powder and used for removing oil stains or used for taking oil bath. It is misnomer to call seeakkai as a soap nut. Seeakkai or Arapputhool or for that matter Araputhool which are the subject matter of consideration in this writ petition will not fall under any one of the entries or heading even if they are mixed with one or more other elements and used for the purpose of bath or cleaning utensils as the case may be. The two products namely seeakkai or Arapputhool will not fall under any one of the entries relied upon by the respondents. Nor it will fall under other items as the expression has to be read ejusdem generic. 56. A Division bench of this Court had occasion to consider the assessability of Usilai Arappu Powder, Seakkai Powder or Arapputhool under the Tamil Nadu Sales Tax Act and held that the two products will not fall under the entry "hair applications ". In that context, the Division Bench in W.A. Nos. 875 to 978 of 1994 dated 22-2-1995 held thus :- "It is also not possible to hold that the brand name in question falls under Serial No 1 Part F of F....
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....akkai" means "Soap Pod Wattle" (Tamil Lexicon). Hence it is clear that Seeakkai is not soapnut powder or soapnut. Hence, it is clear that Seeakkai is different from soapnut and it is not in effect a substitute. It is neither a detergent or a scouring powder, nor it has any application to the oil to the hair, nor it will come under any of the headings in Chapter 33 or 34. It cannot also be brought under the expression "other" in any of the chapters as well. 61. The product which the petitioner marketed, namely Seeakkai Powder or Arapputhool may contain one or more natural plants or seeds or dried berries or leaves. But the product is neither a soap nor a detergent nor it will come under any of those categories as included in chapter 33 or 34. Hence, it is clear that the two products namely Seeakkai and Arapputhool which are being used by poor villagers, as a substitute are not excisable products or commodity. It is clear that it is not the intention of the Legislature to bring in these products as one of the excisable commodities. Both the Chapters will not apply and therefore the two products are not excisable, though it can not be ruled out that there was no manufactur....
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.... at No. 431, Tiruvottiyur High Road, Chennai 21, if they have not already been released and bond, if any executed will stand cancelled consequently. Parties shall bear their respective costs in this writ petition." 7. It was also submitted that vegetable plaiting material and vegetable products not elsewhere specified are included under Chapter Heading 14-1-2000 earlier to 2004-05 carrying nil rate of duty. The soap nut powder is nothing but a forest produce and this contention has been accepted by the Apex Court in Civil Appeal No. 8608/01 in the case of Shri Ramakrishna Soap Nut where they referred in the first paragraph itself that the shigekai is a forest product. Therefore it is submitted that the department itself considered shigekai powder as soap nut powder and classified the same under sub-heading 1404.90.21 from 2005-06 onwards carrying nil rate of duty. It is also submitted by learned counsel Shri Anantha Padmanabhan that in terms of HSN Explanatory notes preparations applied to hair and parts of human body other than scalp are excluded from Chapter heading 33.05.98 of CETA under which heading the revenue has confirmed demands. In support of the contention t....
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....judgment of the Karnataka High Court for demands subsequent to January 99. The appellant in Ramakrishna Soap Nut Works (Appeal No. 265 & 639/04) has prayed for withdrawal of appeal as it pertains to period earlier to January 99. Hence, these two appeals are dismissed. The Apex Court while setting aside the judgments of the Karnataka High Court has referred to the appeal pending before CESTAT and hence they have not expressed their opinion on merits and have directed the appellate authority i.e. this Tribunal, to decide the issue on merits. The matter in all these appeals being common they are taken up for decision on merits in terms of the judgment rendered by the Hon'ble High Court of Madras in the case of Mayil Mark Nilayam v. Superintendent of Central Excise, 2001 (127) E.L.T. 659 (Mad.) = 2000 (2) E.C.L. 71 (Mad.), wherein this very issue has been decided and the Hon'ble High court has clearly held in the extracted portion of the judgment (supra) that bringing into existence shigekai powder which is nothing but soap nut powder cannot be considered as excisable commodity for classification under Chapter Heading 3305.99. In terms of this judgement Shigekai powder is nothing but s....