AI Drafter - (New and Powerful) 
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
TaxTMI 
TaxTMI 
2015 (10) TMI 1839
X X X X Extracts X X X X
X X X X Extracts X X X X
.... is in respect of their unit in the State of Jammu and Kashmir in respect of which they are availing the exemption under Notification No. 56/2002-CE. There are 5 appeals by the appellant. As the issue involved in all these appeals are same, they are taken up together for decision. The period covered is from 01/04/2004 to 31/07/2011. The dispute relates to three products namely Gulabari, Keora Water and Shilajit Capsules. The appellants were paying duty on these products either by utilizing Cenvat credit or by cash and claimed the same as refund of the amount paid through PLA. The Department's view is that Gulabari and Keora Water were correctly classifiable under heading 3301 of Central Excise Tariff as "aqueous solutions of essential o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....supported by facts nor the Tariff entries. The action of the Department is apparently motivated only to deny the concession extended by the Government under Notification No. 56/2002-CE as is evident from the fact that the appellant's own unit in Sahibabad is manufacturing same items (Rose Water, Koera Water, the Shilajit Capsules). There is no dispute regarding classification or duty payment. A different view is taken only in respect of their Jammu unit. The appellant also contended that the proceedings initiated against them in the show cause notice dated 03/4/2009 are not sustainable as the refund sanctioned already by the proper authority is not to be recovered by a demand invoking extended period as per proviso to Section 11A of the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rring. Also add Potassium sorbate. Step 3 : Filter, send sample for analysis. Step 4 : Pack after QA approval. Step 5 : The product thus prepared in Step 4 is filtered through sparker filter. Step 6 : Submit the sample to QC lab for analysis, undertake packaging operation soon after getting satisfactory report from DC Department." 4. In respect of both Gulabari and Keora Water the appellant's plea is that the resultant item sold by them are manufactured products entirely different from the raw materials used and they are rightly classifiable under specific heading in their own name under Central Excise Tariff 33030020 and 33030030 respectively. Regarding Shilajit Capsules, the learned Counsel for t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....edic Medicaments or PP medicines is to be decided. A close perusal of the process involved in the production of bottled and labeled Rose Water and Keora Water indicates that a commercially identifiable distinct product emerges as a result of these processes and it is clear that these two products are emerging out of processes amounting to manufacture. It is not a case of certain limited modifications in the input material to arrive at the product by simple refining or purification. The various specific process addition of materials and packing, specific branding result in a new commercially identifiable product and as such we hold these two products are emerging as a result of manufacturing process. Regarding classification it is clear that....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hout much legal basis. 7. Regarding classification of Shilajit Capsules, the learned Counsel for the appellant submits that they are not manufacturing the product as per the formula specified in any Authoritative text book of Ayurveda. They have their own patented formula for manufacturing this product and they have got drug licence to this effect. As such, they claimed that it is not a Generic Classical Ayurvedic medicine as per Section 3 (a) of the Drug and Cosmetic Act. They have not indicated any Ayurvedic Text book in their product label as per requirement of this Section and as such they are not exempt the Notification No. 3/2005-CE. They have been classifying this product as Patent and Proprietary Ayurvedic Medicine under heading ....