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TMI Blog2017 (2) TMI 764X X X X Extracts X X X X X X X X Extracts X X X X ..... ' - demand set aside - appeal allowed - decided in favor of appellant. - E/58482/2013-EX[DB] - A/70009/2017 - Dated:- 15-12-2016 - Mr. Anil Choudhary, Member (Judicial) and Mr. Anil G. Shakkarwar, Member (Technical) Shri Kapil Vaish, CA for the Appellant (s) Shri Rajeev Ranjan, Joint Commr. (AR) for the Department ORDER The present appeal is filed by the appellant, M/s Indian Wood Products co. Ltd., against Order-in-Original No.43/Commr./Meerut-II/2012-13 dated 31.03.2013. 2. The brief facts of the case are that the appellants were engaged in the manufacture of Katha' and were engaged in the clearance of Indian Katha, classifiable under Tariff item No. 14049050 and were registered with Central Excise. The Officers of Central Excise visited the manufacturing unit of appellant on 2 nd 3 rd January, 2012. They noticed that lndian Katha' manufactured by the appellant was mixture of extracts derived from Acacia Catechu, Husk of Cashew and Catechin derived from imported Gambier extract. They noticed that final product was prepared by mixturing together extract of Acacia Catechu, Cashew Husk and Catechin derived from imported Gambier extract and w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ri Ram Institute of Industrial Research and found that Cutch' contains only 7.4% Catechin and also that they got tested the sample of solvent extracted from wet 'Katha' through the Forest Research Institute, Deharadun and it was found that the sample contained 82.69% Catechin on dry basis. They further submitted that Tariff Item No. 14049050 is only entry, which provides for description of Indian Katha' manufactured by them and that the process of manufacturing Katha' relied upon by the department is not only method of manufacture of 'Indian Katha' and that Katha' can be obtained from any material having Catechin. They further placed reliance on the ruling by Hon ble Supreme Court in the case of CCE, New Delhi Vs. Connaught Plaza Restaurant (P) Ltd. reported at 2012 (286) E.L.T. 321 (SC). The appellant further submitted before the Original Authority that the product manufactured by them was known as Katha' in common parlance, the product manufactured and sold by them was known as Indian Katha' . They further submitted that going by the general rule of interpretation of Schedule to Tariff Act, 1985, the essential character to the goods m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Chapter 32 are Tanning Extract of Vegetable Origin and goods falling under Chapter 14 are vegetable products not elsewhere specified or included . They further contended that the departmental Authority has relied upon the process of manufacture of Katha' provided in the Indian Standards schedule of BIS and Rule 5 of Prevention of Food Adulteration Rules, 1955. They contended that 'Katha' can be obtained from forest sources and active ingredient in 'Katha', is Catechin and Catechin obtained from other sources can be added to i Katha' extracted from Acacia Catechu. They further contended that Catechin is the active ingredient in Katha' and Catechin cannot be used for the purpose of tanning whereas, ingredient required for tanning is available in Cutch' which is byproduct emerging during the manufacture of 'Indian Katha'. They contended that they got their samples tested from Forest Research Institute, Deharadun, which vide report dated 20.03.2009 found to contain Catechin to the extent of 82.69% on dry basis. They further contended that HSN has provided the description of the goods covered under Chapter 32 as tannin extracts of vegetable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... haracteristics. He pointed out that in para 43 of the said order, Hon'ble Supreme Court has observed that it is a settled principle in Excise classification that the definition of one statute having a different object, purpose and scheme cannot be applied mechanically to another statue and that the object of Excise Act is to raise Revenue for which various goods are differently classified in the Act and further observed that the conditions or restrictions contemplated by one statue having a different object and purpose should not be lightly and mechanically imported and applied to a fiscal statute for non-levy of Excise duty. He has further relied on ruling by Hon'ble Supreme Court of India in the case of Pleasantime Products Vs. CCE, Mumbai reported at 2009 (243) ELT 641 (SC) and submitted that the Hon'ble Apex Court in the said case law observed that it should be borne in mind that the words used in the entries must be construed not in any technical sense but as understood in common parlance and further observed that Courts must give the words, used by the legislature, their popular sense meaning that sense which common. people conversant with the subject-matter with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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