9911796707
TMI Blog2008 (11) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... and name Goldiee Marwari Mehndi and were not registered with the Department. In terms of S.N. 66 of Notfn. No. 4/2006 dated 1-3-2006 read with explanatory notes to the Finance Bill for the year 2006-07, exemption from payment of excise duty on Henna Powder not mixed with any other ingredient, falling under Chapter 33 of the Schedule to the CETA 1985 was withdrawn and the same became chargeable to excise duty @8% adv. w.e.f. 1-3-2006. On being asked by the Department for getting themselves registered with the Department and to pay duty on goods cleared w.e.f. 1-3-2006 and to furnish a sample along with details of the goods cleared w.e.f. 1-3-2006, the Appellant vide letter dated 11-11-2006 had stated that :- (i) they were engaged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grounds : That the learned Respondent ought to have appreciated the fact that the Applicants were manufacturing pure Henna Powder and the Henna Powder was not mixed with any other ingredients and under Chapter 1404 10 19 of Central Excise Tariff Act, 1985, the product Henna Powder was classified under a specific entry and the learned Adjudicating Authority has grossly erred by dragging the classification of Henna Powder on Residuary Entry of Chapter 33 of Central Excise Tariff Act, 1985. That the learned Adjudicating Authority ought to have followed the principle of law laid down by Hon ble Supreme Court that for the purpose of classification of a product specific entry cannot be overridden by a General/Residuary Entry. Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... classification of Red Rose Henna for Hair Dye , was finalized which was clearly distinguishable from the case of the appellants who were clearing Pure Henna Powder an/or Mehndi. That the Appellants say that even in Harmonized Commodity Description and Coding System, Henna Powder has been classified as a raw vegetable material of a kind used primarily dying or tanning. That the Appellants while relying upon the explanatory notes of HSN for classifying Pure Henna Powder under Chapter 14 rely upon the following decision. (a) 1997 (91) E.L.T. 13 (S.C.) in CCE, Hyderabad v. Bakelite Hylam Ltd. (b) 2005 (180) E.L.T. 300 (S.C.) in O.K. Play (India) Ltd. v. CCE, Delhi-III That the learned Respondent has misdire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peared for hearing on behalf of revenue. Discussion Findings :- 7. I have carefully gone through the facts of the case, submissions made by Appellant from time to time and records of personal hearing. I take up the main appeal along with stay application together in the interest of speedy disposal of Appeal. 8. I find that instant appeal has been filed against demand of duty arising out of classification of Henna Powder under Chapter 33 instead of Chapter 1404 10 19, as claimed by the appellant. Demand of interest and imposition of penalties have also been contested by the appellant. The issue of classification of goods under reference had already been decided by this office vide O-in-A referred by the Appellant. 9. I observe that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Powder under Chapter 33 and no sub-heading thereof has been referred to. On perusal of findings it appears that the Adjudicating Authority has decided the classification under chapter sub-heading 3305 relating to preparations for use on the Hair. On perusal of sub-headings of Chapter 3305, I find that chapter deals with preparations which are exclusively used on hair and no specific sub-heading provides the entry as Henna, Henna leaves or Henna Powder. On the other hand Vegetable Products not else where specified or included - Henna Powder finds a specific sub-heading as 1404 10 19 and it has been mentioned in the impugned order itself. Further I find force in the Appellant s contention that facts and circumstances of the case of Henna Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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