2016 (5) TMI 604 - SCH - Central Excise

Invokation of extended period of limitation - Section 11A(1) of the Central Excise Act, 1944 - Classification of goods - Classification as shampoo or ayurvedic liquid soap - Deliberate suppression of production and clearance of excisable goods - evasion of central excise duty - Petitioner contended that the goods being classifiable under chapter heading 3003.20, approved by this Court in Meghdoot Gramodyog Sewa Sansthan v. C.C.E., Lucknow 2004 (10) TMI 93 - SUPREME COURT OF INDIA , and the said shampoos have been declared as ayurvedic medicines where excise duty is not payable - Held that - there shall be interim stay of the impugned order, subject to the petitioner depositing fifty per cent of the demanded duty before the Department within eight weeks.

Summary

The Supreme Court heard a case regarding Central Excise Reference No. 8 of 2004, where the High Court's decision in favor of the Revenue was challenged. The petitioner argued that the goods in question, including Dena Ji Brand shampoos, were ayurvedic medicines not subject to excise duty. An interim stay was granted on the impugned order, pending the petitioner depositing fifty percent of the demanded duty within eight weeks.