TaxTMI 
TaxTMI 
2013 (3) TMI 259
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing units in various parts of India. The dispute in this case is in respect of their unit in the State of Jammu & Kashmir in respect of which they are availing exemption under Notification No. 56/2002-C.E. which exempts from whole of the basic excise duty and special excise duty leviable under Section 3(1) of the Central Excise Act, 1944 and the whole of Additional Duty of Excise leviable under Additional Duty of Excise (Goods of Special Importance) Act, 1956 and Additional Duty of Excise (Textiles and Textile Articles) Act, 1978, the goods falling under the Central Excise Tariff, other than those mentioned in Annexure-I to the notification and manufactured and cleared from the units located in the industrial areas etc. specified in Annexur....
X X X X Extracts X X X X
X X X X Extracts X X X X
....duty is chargeable. The Department, therefore, was of the view that since no duty is payable in respect of these products, there is no question of granting exemption under Notification No. 56/2002-C.E. by the way of refund of duty paid through PLA. On this basis, four show cause notices dated 3-4-2009, 4-5-2009, 1-4-2010 and 3-11-2010 were issued for demand of duty allegedly erroneously granted refunds of Rs. 8,61,73,728/-, 3,08,95,66 and 39,31,283 and Rs. 1,38,937/- for the period from 2004-05 to 31-3-2008, 1-4-2008 to 28-2-2009, 1-3-2009 to 30-9-2009 and 1-10-2009 to 3-9-2010 respectively. 1.2 These show cause notices were adjudicated by the separate orders passed by the Commissioner of Central Excise, Jammu by which the above mentione....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ocate, ld. Counsel for the appellant pleaded that Gulabari and Kewra Water is made from the Kewra Oil and Rose Oil, that for manufacture of Gulabari and Kewra Oil first propylene glycol is heated upto 60 degree Cent, and in which Methyl Parabens and Propyl Paraben are dissolved by stirring, that thereafter the resultant solution is cooled to room temperature, and the Rooh Gulab or kewra oil, as the case may be, is mixed, that thereafter de-mineralised water is added and the solution is stirred with mechanical stirrer after adding a chemical - Bronopal, that the resultant product gulabari and kewra oil are a new product and are specifically covered by sub-heading 3303 00 20 and 3303 00 30 of the Tariff, that the Commissioner's findings that ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of the appeals and recovery thereof may be stayed till the disposal of the appeals. 4. Shri R.K. Verma, ld. Departmental Representative, opposed the stay applications by reiterating the findings of the Commissioner in the impugned orders and emphasized that making gulabari and kewra water from rose oil/kewra oil does not amount to manufacture, as the same is simply a process of dilutuion, that the Gulab and Kewra water are nothing but aqueous solutions of essential oils which are classifiable under Heading No. 3301 and are excluded from the purview of Heading 3303, that as regards shilajit the same being an ayurvedic medicine is fully exempt from duty under Notification No. 3/2005-C.E., that since no duty was payable in respect of these....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e to be held as specifically covered by Heading No. 3303 not under heading 3301. Moreover, we are also of prima facie view that gulabari (rose water) and kewra water are the products commercially different from rose oil and kewra oil with different name and usages and, therefore, the process carried out by the appellant amounts to manufacture and as such, the duty had been correctly paid by the appellant in respect of these products and exemption under Notification No. 56/2002-C.E. has been correctly availed. We also take note of the fact that it is not disputed that the Sahibabad unit of the Appellant where the same products are being manufactured the duty is being paid on their products. In view of this, in respect of J & K unit of the ap....