9911796707
TMI Blog1998 (9) TMI 389X X X X Extracts X X X X X X X X Extracts X X X X ..... der sub-heading 3003.30 demanded a duty of Rs. 74,242.35 and penalty of Rs. 74,000/- was levied. 2. The appellant started manufacture of the Ayurvedic Medicament in 1989 by the name ERGOPAC AV . They cleared two consignments of these medicines under G.P. 1 No. 4, dated 18-4-1989. They also filed a classification list bearing C.L.No.1/89-90, dated 11-4-1989 for the said product classifying it under Chapter heading 3003.30 and claimed benefit of Notification No. 32/89-C.E., dated 1-3-1989. This classification was approved. Along with the classification list they had also filed a copy of their label which was put on the container. A letter from the Food and Drug Control Administration for the manufacture of said product ERGOPAC AV was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judgement of the East India Pharmaceutical Works Ltd. s case 1994 (71) E.L.T. 358 especially paragraphs 26 to 29 of the said judgement to say that how the product will in this case have to be treated as Ayurvedic product. He also stated that when the earlier Show Cause Notice was issued on 1-2-1991 which was not disposed of subsequent Show Cause Notice dated 5-4-1994 could not be decided. And he tried to cite the judgment of the Tribunal in Neyveli Lignite Corporation Ltd. v. C.C.E. reported in 1992 (58) E.L.T. 76. 4. As against this the ld. D.R. argues that the product in question is not an Ayurvedic product. He stated that the decision of the Ayurvedic product in Panama Chemicals Work s case 1992 (62) E.L.T. 241 (M.P.) is entirely diff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d pastes is filled up in Soft Gelatine Capsules. The price list filed on 11-4-1989 in proforma III seeks approval for claiming exemption under 32/89. The classification list which was approved in 1989 was dated 11-4-1989. The appellants was unable to give us as to how the product is manufactured exclusively in accordance with the formulae described in the authoritative books specified in Schedule to the DCRB. It is useful to refer to the judgement of the Panama Chemicals decided by the Madhya Pradesh High Court. That was a case in which the petitioners filed a Writ Petition in the Madhya Pradesh High Court seeking to quash the Show Cause Notice issued by the Central Excise authorities. The question arose in that case was whether the product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions it is clear that as held in para 30 of the said judgment the ingredients were taken from the authoritative Ayurvedic books with certain modifications. Here in this case no such evidence has been let in as to the preparations of the products having been made in accordance with any Ayurvedic text books. If we see the provisions of Drugs and Cosmetics Act, 1940 the said definition states as follows: 3. Definitions: In this Act, unless there is anything repugnant in the subject or context - (a) Ayurvedic, Siddha or Unani Drug, includes all medicines intended for internal or external use for or in the diagnosis, treatment, mitigation or prevention of (disease or disorder in human beings or animals, and manufactured) exclusively in accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Madya Pradesh High Court Case as stated above in para - 30 clearly distinguishes the facts in these cases. 8. Let us see the decision of the Calcutta High Court relied on by the appellant. The Calcutta High Court in the case of East India Pharmaceuticals Works Ltd. v. Asstt. Collector, 1994 (71) E.L.T. 358 decided the question as to whether the presence of allopathic ingredients in the product KAFBIN will be entitled to be treated as Ayurvedic medicine or not. In para 25 of the judgement the court held that the presence of allopathic or inactive ingredients will not render an Ayurvedic medicine anything less Ayurvedic provided the ingredients have not been mixed or compounded for therapeutic or prophylactic use. The mixing for the purp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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