9911796707
TMI Blog1989 (11) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... efly are: The appellants manufacture Ayurvedic Maka Oil, Ayurvedic Amla Oil and Ayurvedic Brahmi Oil, hereinafter referred to as oils, since 1964 by using herbal ingredients. After the oil is manufactured, as per the process stated in Appeal Memo, a small quantity of 0.3% of sandal wood oil is added in order to preserve aroma and to prevent the oil from becoming rancid. In the year, 1971, perfumed hair oil was included in T.I.14F and that product was brought under excise net, but as the appellants were not manufacturing perfumed hair oil, even though they were made to obtain the manufacturing licence, they were paying duty under protest. But, subsequently, relying upon evidence and reports of the experts, produced by the appellants, the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts were compelled to take out Central Excise licence by the Central Excise authorities and were made to pay duty on the same. In the year 1976, the Commissioner, Food Drugs Administration, agreed to classify the said products as Ayurvedic medicines and issued the licence dated 3-7-1976 to that effect. The appellants brought this fact to the notice of Central Excise authorities and started paying duty under protest. The appellants also prayed for exemption from paying C.E. duty and contended that what they were producing was not perfumed hair oils. After investigating the matter, by his order dated 1-2-1977, Assistant Collector, provisionally, approved the classification list of the appellants, classifying the products under heading Ay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Order-in-Original (copy at Sl. No. 9), the Assistant Collector also has not given any finding that what is being produced is perfumed hair oils. 6. On perusal of the Order-in-Appeal (copy at Sl. No. 10), we find that the Ld. Collector (Appeals) has noted in his order (at internal page 7), as under : The next question is whether the hair oil is pefumed or not. There is no clear finding on this aspect, even though it is admitted that 0.3% sandal wood oil is added during the manufacture in order to stabiles and preserve odour as there is a tendency in the coconut oil to become rancid. The Deputy Chief Chemist s letter No. S.1/8/77 dated 26th August, 1977 has been cited to prove that, on the basis of various ingredients such as Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from deterioration and stinking smell. I feel that the above products are Ayurvedic since formula of the products contain Ayurvedic ingredients and they have been processed more or less as per Ayurvedic manufacturing vidhi known as Snehapak Vidhi. 9. So, only because sandal wood oil is added to the products, it cannot be argued that the same has been added for the purpose of making them perfumed products or that the products have become perfumed hair oils. 10. The appellants have, at Sl. No. 31 of the paper book, produced a copy of the judgment in the case of Union of India and Others v. T.S.R. Co. -1985 (22) E.L.T. 701 (Mad.) wherein the Hon ble High Court has explained Connotation of the expression perfumed oil as under : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are not convinced about this finding. No argument has been advanced before us that the product, in question, will be covered by this Tariff Entry as they answered to the description of the products in this entry or that they could be so covered. It will be appropriate to note that even though the definition is inclusive one, a product for not to be included therein, has to be either one of the products mentioned therein or at least equivalent thereof. Wording of the description suggests that what are sought to be included are toilet and/or cosmetic preparations and the department is not able to prove that the products are such preparations. Assuming that the products are hair oils, but then, by itself, would not bring these products into am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or as cosmetic under new Central Excise Tariff classification and for the reasons stated in the opinion of the Director General of Health Services, the Board has advised the Collector concerned that the same should be classified as ayurvedic medicine. The Directorate has based its opinion on the basis of opinion expressed by the Adviser (Ayurveda Sidha) in the Ministry of Health and Welfare (Government of India). According to L.A., Shri Joshi, products of the appellants are also similar to the product Ramtirtha Brahmi Oil and these products also fulfill all the five conditions which are stated in this opinion. So, according to L.A., Shri Joshi, the appellants have prayed, by the misc. application No. 361/89-C, that their product be also c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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