TaxTMI 
TaxTMI 
2026 (7) TMI 1531
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....;50,000/- 05/2017-18 dated 05.06.2017 402404/2018 dated 24.09.2018 E/54061/2018 30/77/2015/5619 dated 22.07.2015 Rs.50,000/- 05/2017-18 dated 05.06.2017 402-404/2018 dated 24.09.2018 E/54062/2018 30/115/2016/5309 dated 28.02.2017 Duty of Rs.1,05,57,039 / - + Penalty of Rs. 10,55,704/- under Section 11AC(1)(a) of Central Excise Act, 1944 11/201718 dated 18.08.2017 402404/2018 dated 24.09.2018 E/52477/2023 187/2018 dated 21.12.2018 Duty of Rs. 33,55,530/- + Penalty of Rs.3,34,572/- under Section 11AC (1) (a) under Central Excise Act, 1994 16/201920 dated 15.10.2019 19/2021 dated 05.02.2021 1.1 The facts in brief relevant for the purpose are that the appellant M/s. Vinayak Manutrades Pvt. Ltd., the appellant herein, is engaged in manufacture of various excisable goods like mineral water, Phenyl (Slack Dis....
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.... said product are prayed to be set aside. Since two show cause notices have raised demand only on this point, the said show cause notices and the consequent adjudication orders are liable to be set aside. 3.1 While submitting about demand of excise duty confirmed on repacking of medicines by the appellant, it is submitted that the medicines manufactured by the appellant are covered under Entry No. 30 of Notification No. 1/2011-CE dated 01.03.2011 and accordingly from 17.03.2011 the duty only at the rate of 2% in terms of Notification No. 16/2012 dated 17.03.2012 is applicable. The department has wrongly confirmed the demand based on the wrong findings that the allopathic medicines are not mentioned in the said notification. Learned counsel has impressed upon that the Entry has used the word 'including' which means that it is all type of medicaments including those which are specifically mentioned in the entry. The appellant products/the allopathic medicines fall under the category of medicaments. The another condition of exemption has also been complied with by the appellant. Hence duty on repacking of medicines is wrongly confirmed. The order to that extent is also liabl....
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....pathic Pharmacopoeia. The appellants are manufacturing generic allopathic medicines which are out of the scope of the said notification. The demand has rightly been confirmed. 4.3 Finally rebutting the submissions about invocation of extended period of limitation, it is mentioned that the appellant had clear knowledge of excise liability vis-à-vis the products manufactured by them. They had obtained the drug licenses for manufacturing surgical dressings under Drug Schedule F (II). However, they concealed this activity from the authorities. The appellants had otherwise voluntarily deposit of Rs. 50 lakhs after the raid. To support his submissions, learned Departmental Representative has relied upon the following decisions: (i) Ramaraju Surgical Cotton Mills Vs. Collector of Central Excise, Madurai reported as 1996 (82) ELT 86 (Tribunal) (ii) Medtek Asia Pvt. Ltd. Vs. Commissioner of Central Excise, Mysore reported as 2018 (9) GSTL 288 (Tri.-Bang.) (iii) Commissioner of Central Excise, Mumbai Vs. Kalvert Foods India Pvt. Ltd. reported as 2011 (270) ELT 643 (SC) (iv) Commissioner of Customs (Import), Mumbai Vs. Dilip Kumar & Company report....
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.... 560121 Of cotton; 56012110 Absorbent Cotton Wool Kg. 12.5% 56012190 Other Kg. 12.5% 56012200 Of man-made fibres Kg. 12.5% 56012900 Other Kg. 12.5% 56013000 Textile flock and ust and mill neps Kg. 12.5% Though the appellant has taken the plea that the specific entry must take precedence over the general entry and as per specific entry, appellant's product i.e. absorbent cotton wool is under 5601. But from the table given above, it is clear that what is covered under Chapter 56 are clearly products of textile material and articles thereof i.e. wadding of textile materials. If textile being cotton than absorbent cotton wool is under CTH 5601. 6.2 On the other hand, the products under Chapter 30 are the products used in dressings etc. for medical, surgical, dental or veterinary purposes. These products includes wadding, gauze, bandages and even medicated cotton wool. 6.3 The appellant in the present case as per the statement of appellant's Director Shri Chandra Prakash Bansal is engaged in manufacturing absorbent cotton wool along with the surgical gauze/....
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....s wrongly classified by the appellant under 5601. It is rightly classifiable under CTH 3005 as claimed by the department which attracts Central Excise Duty. Hence, this issue stands decided in favour of the department. 7. Issue No.2 7.1 Foremost, we have perused the Notification No. 1/2011. It reads as follows: S. No. Chapter or heading or sub-heading or tariff item of the First Schedule Description of the excisable goods 37 30 Medicaments (including those used in Ayurvedic, Unani, Siddha, Homeopathic or Bio-chemic systems), manufactured exclusively in accordance with the formulae described in the authoritative books specified in the First Schedule to the Drugs and Cosmetics Act, 1940 (23 of 1940) or Homeopathic Pharmacopoeia of India or the United States of America or the United Kingdom or the German Homeopathic Pharmacopoeia, as the case may be, and sold under the name as specified in such books or pharmacopoeia. 7.2 For the medicaments as mentioned above, the exempted rate of duty was fixed at the rate of 2% in terms of amending Notification No. 16/2012 dated 17.03.2012. The bare perusal reveals that the entry c....