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TMI Blog2018 (7) TMI 681X X X X Extracts X X X X X X X X Extracts X X X X ..... New Delhi in short called M/s IRLP are registered as the manufacturer of 92 ayurvedic medicines. They have got themselves registered with Central Excise Department also. However, on the basis of an intelligence gathered, the anti evasion branch alleged that M/s IRLP is manufacturing beauty products as that of cream, lotions, etc. and thus are the manufacturers of the products called cosmetics and toilet preparations which are chargeable to duty at the rate of 40% under Chapter 33 of CETA but the appellants were clearing those products as ayurvedic medicines only on the payment of duty at the rate of 10% advelorem. Resultantly, several Show Cause Notices were served upon them demanding the differential duty in accordance with duty chargeable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to the appellants. The penal provisions were accordingly, invoked against them. Against all the Order-in-Originals, the following appeals were filed:- Show Cause Notice No. Appeal No. 1 E/1116-1118/98-C 2 & 3 E/3221-3223/98-C 4 E/3224-3227/98-C Supplementary Appeal No. E/678-680/99-C 5. E/2279-2281/98-C 5. All these appeals were decided by Tribunal Delhi vide its decision/common Order No. 381-396/2000-C dated 28.08.2000 reported as 2001 (137) E.L.T. 293 (Tri.-Del.). Vide this decision, out of 92 products of appellants (claimed by them as ayurvedic medicines) 22 products were held chargeable under Heading 3003.30 of Central Excise Tariff i.e. ayurvedic medicines and rest of the 70 products were held as cosmetics and toiletries p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emanded back on the grounds of violation of the principle of natural justice. In compliance thereof, the Commissioner vide Order No. 08/2011 dated 27.12.2011 dropped the demands in respect of Show Cause Notice dated 02.05.1997 and 28.10.1997 and requantified the amount in respect of remaining 2 Show Cause Notices at Rs. 11764695/- without imposing any penalty. Separate appeals were filed against this Order which were again remanded back vide the Order dated 04.04.2013 and 22.05.2013 for decision on question of penalty after requantificaton of the duty. 7. It is after this remand that various evidences were submitted by the appellants before the Commissioner regarding the correct valuation of goods in respect of 2 Show Cause Notices. He req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry of cosmetics and toilet preparation which are leviable to the duty at the rate of 40%. To evade the said duty only they were classifying their products as ayurvedic medicines. Thus, the adjudicating authority below has rightly levied the penalty. Requanitfication has also been justified. Appeal is prayed to be set aside. 10. After hearing both the Ld. Counsel we are of the considered opinion as follows:- Vide the Order of this Tribunal dated 28.08.2000, after talking in detail all names of products and descriptions on the label, 72 products of the appellant were held as not to be ayurvedic medicines but as cosmetics. M/s. IRLM and IRLP were held not to be related persons. In terms of Section 4 (4) (c) of Central Excise Act, in as such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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