2015 (3) TMI 693

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....though these appeal are admitted on substantial question of law formulated in this court's order dated 10 January 2006, the question going to the root of the controversy is whether products of the respondent assessee are proprietary classifiable as patent or proprietary medicaments for they are solely generic drugs therefore, classifiable as such. She submits that so long as this issue has not been addressed, it would be possible to assume that the final product is attracting Nil rate of duty. Thus, the issue of classification and the duty liability are inter connected and one cannot be isolated from the other. Even for determination of the issue as to whether the assessee is eligible for Modvat Credit, classification of the product pro....

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....edit taken in respect of inputs used in the manufacture of final products cleared on payment of duty as per approved classification list is not required to be reversed on the ground that the department was subsequently of the view that the final product was not dutiable. The same idea has been expressed by the Tribunal in ACE Laboratories Ltd. vs. CCE , New Delhi 2001 (128) ELT 376. Following the ratio of the above orders which are on all fours applicable to the facts of the present case we set aside the impugned order and allow the appeals." 5. However, on perusal of the show cause/demand notice, it indicates that as to how the revenue alleged that the assessee is engaged in the manufacture of medicaments falling under Chapter 30 Sub He....

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....thority proceeded to classify the product under Sub Heading 3003.20 of the Central Excise Tariff Act being generic medicaments and attracting Nil rate of duty. This finding is confirmed by the Commissioner of Appeals and a copy of which is to be found in the paper book at Page Nos. 50 to 52. 6. Even from the grounds raised by the assessee to challenge the correctness of the orders as found in the Memo of Appeal lodged in the CESTAT , it would be apparent that it questions the correctness of the finding in the order of the first appellate authority on classification of the medicaments as other than proprietary medicaments. In view of the above, they should fall under Chapter 30 Sub Heading 3003.10 and not 3003.20. There is extensive refer....