2004 (6) TMI 478 - AT - Central Excise

Summary

Issues: Classification of goods as Ayurvedic medicament or cosmetic under CETA Schedule, Demand of duty, Waiver of pre-deposit and stay of recovery

Classification of Goods:
The case involved a dispute over the classification of "Raaga Herbal Powder" manufactured by a Women Worker's Co-operative Society. The appellants claimed it should be classified as an Ayurvedic medicament under Heading 30.03 of the CETA Schedule, while the department argued it was a cosmetic falling under Heading 33.05. The Tribunal acknowledged the arguable nature of the dispute due to the differing opinions on the classification of the herbal powder.

Demand of Duty:
Following the department's view that the herbal powder was a cosmetic, a demand for duty was raised on the women's society. Despite the Commissioner (Appeals) upholding this demand, the Tribunal considered the financial constraints that led to the closure of the society's job work activity. Given the non-existence of the society and the importance of empowering women, the Tribunal decided to grant a waiver of pre-deposit and stay of recovery concerning the duty demanded by the lower authorities.

Waiver of Pre-deposit and Stay of Recovery:
In light of the circumstances, including the closure of the society's activities and the absence of the society itself, the Tribunal exercised compassion and granted a waiver of pre-deposit and stay of recovery in respect of the duty amount pending the appeal. This decision aimed to provide relief to the appellants and acknowledged the need to support women's empowerment initiatives.