1997 (7) TMI 474 - AT - Central Excise

Summary

Issues:
1. Challenge to order-in-original regarding manufacturing and clearance of "MUKTA CHAMAK" powder without Central Excise license.
2. Classification of the product as "Ayurvedic Medicine" or "tooth powder."
3. Applicability of duty exemption under Notification No. 32/89.
4. Time-barred nature of the show cause notice and intentional evasion of duty.

Analysis:

1. The appellant, an SSI Unit manufacturing "MUKTA CHAMAK" powder, challenged the order-in-original for not obtaining a Central Excise license, not following procedures, and not paying duty. The show cause notice alleged the product fell under Chapter Heading 3306, not Chapter 33, proposing a duty demand and penalty.

2. The appellant claimed the product was "Ayurvedic Medicine" exempt under Notification No. 33/89, citing therapeutic benefits and ingredients. However, the adjudicating authority ruled against the appellant, emphasizing the product's classification as tooth powder.

3. The appellant argued that the product attracted sub-heading 3003.30 for duty exemption. The Tribunal analyzed the Tariff and held that the product, "MUKTA CHAMAK," was essentially tooth powder under Chapter Heading 33.06, not Ayurvedic medicine under sub-heading 3003.10, thus not entitled to the exemption.

4. The appellant contended the show cause notice was time-barred, issued in 1994 for violations in 1989-90. The Commissioner invoked the proviso to Section 11A(1) of the Act due to deliberate suppression of facts to evade duty. The Tribunal dismissed the appeal, upholding the Commissioner's decision based on intentional evasion and statutory violations.

In conclusion, the Tribunal upheld the order-in-original, classifying the product as tooth powder, denying duty exemption, and rejecting the appeal due to intentional evasion and time-barred notice.