2003 (8) TMI 50

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....f the period 1-8-1990 to 28-2-1994 by Revenue Authorities in both the States on the basis that the herbal extracts were leviable to excise duty under Chapter 13. As far as West Bengal was concerned the relevant entries were construed by the Commissioner and it was held that the goods were properly classifiable under Chapter 30 under Tariff Item 30.03. The rate of duty at that point of time was nil. He accordingly dropped the proceedings. 3.As far as Uttar Pradesh was concerned however, the Commissioner decided the proceedings against the appellant holding that the extracts were properly classifiable under Chapter 13. The appellant's further appeal to the Tribunal from this decision was rejected and that is the order impugned before us. ....

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.... two or more constituents which have been mixed or compounded together for therapeutic or prophylactic uses; or unmixed products suitable for such uses put up in measured doses or in packings for retail sale or for use in hospitals. In relation to products of Heading No. 30.03, conversion of powder into tablets or capsules, labelling or relabelling of containers intended for consumers and repacking from bulk packs to retail packs or the adoption of any other treatment to render the product marketable to the consumer, shall amount to 'manufacture'." 8.The appellants raised several contentions including that of limitation. But, the mainstay of the appellants argument is a circular which has been issued by the Central Board of Excise ....

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....assifiable under Heading Chapter 30.03. There is no requirement that the extract should be used for therapeutic or prophylactic purposes "as such". 11.The Tribunal which referred to the circular misinterpreted it when it said : "The ingredients - vegetables extracts could not be confused with the final medicaments prepared from such extracts along with other ingredients. Merely because the herbs had medicinal properties, it could not be said that the extracts were medicaments as per the definition in the tariff and as commonly understood." 12.The Tribunal's reasoning appears to be contrary to the CBEC circular and in any event wholly contradictory. According to the Tribunal the Circular in effect meant that : "The mixed or compo....