2018 (3) TMI 1233 - AT - Central Excise

Liability of duty - Henna Powder - Held that - identical issue decided in the case of M/s. Baboolal Brijbhushan vs. CCE, Jodhpur 2018 (3) TMI 1186 - CESTAT, NEW DELHI , where it was held that the Ministry of Finance issue N/N. 11/2017-CE(NT) dated 24.04.2017 under Section 11C of the Central Excise Act, 1944 exempting Henna Powder and Paste falling under Chapter 33 for the period 01.01.2007 to 01.03.2013 - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Duty liability of the assessee-appellants for Henna Powder.
2. Applicability of Notification No. 11/2017-CE (NT) dated 24.04.2017.
3. Classification of Henna Powder and Paste under Chapter 33 or Chapter 14.
4. Sustainability of demand confirmation for the period from 01.01.2007 to 01.03.2013.

Analysis:
The appeal before the Appellate Tribunal CESTAT, New Delhi pertained to the duty liability of the assessee-appellants for Henna Powder for the period from 1.4.2008 to 30.6.2012. During the hearing, it was noted that a similar issue had been addressed in a previous case, M/s. Baboolal Brijbhushan vs. CCE, Jodhpur, where it was observed that Notification No. 11/2017-CE (NT) dated 24.04.2017 exempted Henna Powder and Paste under Chapter 33 for the period from 01.01.2007 to 01.03.2013. The Tribunal had previously ruled in other appeals that no Central Excise Duty was required to be paid on the manufacture of Henna Powder and Paste due to the mentioned notification. The Tribunal refrained from expressing an opinion on the classification of the goods under Chapter 33 or Chapter 14 at that time.

The Tribunal also considered the Notification issued under Section 11C, which exempted the levy of excise duty during the relevant period. Consequently, the confirmation of demand for the said period was deemed unsustainable. Following the precedent set by previous orders, the Tribunal set aside the impugned orders and allowed the appeals filed by the assessee-appellants. The final decision was to set aside the impugned order and allow the appeal, in line with the earlier ruling and the provisions of the Notification exempting the duty for the specified period.

In conclusion, the Tribunal's judgment revolved around the interpretation and application of the Notification exempting Henna Powder and Paste from Central Excise Duty for a specific period. The classification of the goods and the sustainability of the demand confirmation were crucial aspects considered in reaching the decision to set aside the impugned orders and allow the appeals.