2000 (1) TMI 473 - AT - Central Excise

Summary

Issues involved: Classification of Gulabjal marketed as "Gulabari" under Heading 33.03 of the Central Excise Tariff Act.

Analysis:
1. Appellant's Argument: The Appellant, M/s. Dabur India Ltd., classified Gulabari as an Ayurvedic medicine since 1977, supported by a license from the State of U.P. They argued that previous classification lists were approved by the Central Excise Department. The Appellant contended that the show cause notice lacked reasons for reclassifying the product as toilet water after 20 years. Reference was made to technical books stating that toilet waters contain alcohol, which their product does not. The Appellant emphasized the absence of alcohol in their product and cited the Apex Court's ruling on the revenue's onus to establish classification.

2. Revenue's Argument: Dr. R. Babu, representing the Revenue, reiterated lower authorities' findings and highlighted the absence of a test report from the Appellant proving the product's composition.

3. Judgment: The Tribunal noted that neither party provided a chemical test report on the product's contents. The Department failed to justify why the product should be considered toilet water in the show cause notice or present evidence supporting its classification. The Tribunal ruled that the Revenue did not discharge the burden of proving the product as toilet water under Heading 33.03. Consequently, the demand for Central Excise duty was set aside. However, the Tribunal clarified that this decision did not confirm the product's classification as Ayurvedic Medicine under sub-heading No. 3003.30, leaving room for the Department to determine the correct classification in future proceedings.