9911796707
TMI Blog1998 (3) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... he U.P. Khadi Gram-Udyog Board and engaged in the manufacture of various types of Shampoos viz. (1) Denajee Brand Satritha Shampoo (2) Denajee Brand Herbal Shampoo and (3) Denajee Brand Neem Shampoo. The department found that these three products were specifically manufactured for use on the hair and would fall for classification under Chapter Heading 3305.90 of the Schedule to the Central Excise Tariff Act, 1985 and therefore, liable to duty at the rates applicable from time to time. The applicants had not applied for registration as a Central Excise unit and had also not filed any classification list for manufacture of these three types of shampoos and therefore, a show cause notice was issued on 14-3-1997 for demand of duty of Rs. 1,70,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also highlighted the fact that the applicant No. 1 is facing extreme financial hardship and the profit and loss account for the year 31-3-1997 shows a net surplus of approximately Rs. 5 lakhs and a negative bank balance of Rs. 54,000/-. As far as the merits of the matter are concerned, he submits that the plank of the show cause notice is the judgment of the Tribunal in the case of BPL Pharmaceuticals reported in [1994 (69) E.L.T. 798]; however, this decision of the Tribunal has been reversed by the Supreme Court in the case of BPL Pharmaceuticals Ltd. as reported in [1995 (77) E.L.T. 485] and therefore, the foundation of the entire case against the applicants falls to the ground. He submits that it is not open to the department to plead t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son that they are a unit registered with the U.P. Khadi Gram-Udyog Board. As far as the financial position is concerned, he submits that looking to the sales turnover of Rs. 16 lakhs, it would not cause them undue hardship if they are asked to deposit the duty and penalty amount. He therefore prays that the assessees may be directed to pay the duty and penalty amounts. 5. We have carefully considered the above submissions. The question of correct classification of the three products, whether as ayurvedic medicaments under Chapter Heading 30.03 as claimed by the appellants or under Chapter Heading 3305 as preparations for use on hair, can be gone into at the time of final hearing of the appeal since this issue is arguable, and on decisions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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