2018 (9) TMI 1054 - AT - Central Excise

Classification of goods - NIVARAN-90 - the very same issue concerning classification of Nivaran-90 Herbal Cough Syrup had come up in appeal before this Tribunal in the case of Velvette International Pharma Products 2010 (5) TMI 295 - CESTAT, CHENNAI , where this Tribunal had upheld the stand of the department that impugned goods are not entitled for exemption as Ayuverdic goods - Held that - We do not find any reason why the classification as affirmed by the earlier order of Tribunal should not be reiterated in this case also. Extended period of limitation - Held that - the extended period is being invoked on account of respondent having misdeclared the ingredients, formula and method of manufacture of Nivaran-90 cough syrups supplied as per Ayurvedic texts in their classification list / declaration filed and further that they suppressed the actual ingredients used by them in the said product, with intention to evade payment of duty - invocation of extended period upheld. Appeal allowed - decided in favor of Revenue.

Summary

Issues: Classification of goods as Ayurvedic medicament under CETH 3003.30 and eligibility for exemption under notification No.32/89-CE and 9/93-CE, invocation of extended period for misdeclaration of ingredients.

Classification of Goods:
The judgment pertains to the classification of goods as Ayurvedic medicament under CETH 3003.30 and their eligibility for exemption under notification No.32/89-CE and 9/93-CE. The Ld. A.R argued that the impugned goods, "Nivaran-90 Herbal Cough Syrup," were not entitled to exemption as Ayurvedic goods based on a previous Tribunal decision. The Commissioner (Appeals), however, classified the goods as Ayurvedic medicament and eligible for exemption, setting aside the original authority's order. The Tribunal found that the issue had been previously decided in a similar case and upheld the stand of the department. The Tribunal noted that the extended period was invoked due to misdeclaration of ingredients by the respondent to evade duty, supporting the Revenue's position. Consequently, the Tribunal allowed the appeal, restoring the Order in Original passed by the original authority and setting aside the impugned order.

Invocation of Extended Period:
The judgment also addressed the invocation of the extended period for misdeclaration of ingredients by the respondent. The impugned show cause notice indicated that the extended period was invoked because the respondent misdeclared ingredients, formula, and method of manufacture of the cough syrup to evade duty. The lower appellate authority had found no case for the invocation of the extended period, contrary to the evidence presented. The Tribunal, however, disagreed with the lower authority's finding and ruled in favor of the Revenue, allowing the appeal and restoring the original authority's order. The Tribunal's decision highlighted the importance of accurate declaration of ingredients and upheld the invocation of the extended period in cases of misdeclaration with intent to evade payment of duty.

In conclusion, the judgment by the Appellate Tribunal CESTAT CHENNAI addressed the classification of goods as Ayurvedic medicament and the invocation of the extended period for misdeclaration of ingredients. The Tribunal upheld the Revenue's position based on a previous decision and found in favor of the department, allowing the appeal and setting aside the impugned order. The case serves as a reminder of the significance of accurate declaration of ingredients in determining the classification and eligibility for exemptions under relevant notifications.