- (1.) This court had issued notice in the present petition on 15th January, 2016 and the following order was passed: "Heard Mr. Pawanshree Agrawal, learned counsel for the petitioner. Delay condoned. It is submitted by Mr. Agrawal that the High Court has committed grave error in answering the question No.1 in the Central Excise Reference No.8 of 2004 in favour of the revenue in an erroneous manner that the extended period of limitation would be applicable, inasmuch as the goods in question were excisable and removal thereof without paying duty was in contravention of the provisions of the Act. It is urged by him that the goods involved herein are, Dena Ji Brand Satritha shampoo, Dena Ji Brand Harbal shampoo and Dena Ji Brand Neem shampoo, being classifiable under heading 3003.20, approved by this Court in Meghdoot Gramodyog Sewa Sansthan vs. C.C.E., Lucknow, 2004 174 ELT 14 (SC), and the said shampoos have been declared as ayurvedic medicines where excise duty is not payable.It is contended by him that when duty is not leviable, the issue of extendable period would not be applicable. Issue notice. There shall be interim stay of the impugned order,subject to the petitioner depositing fifty per cent of the demanded duty before the Department within weeks hence."
(2.) We have heard learned counsel for the parties. We find merit in the submission canvassed by the learned counsel for the respondent that the decision in Meghdoot Gramodyog Sewa Sansthan vs. C.C.E., Lucknow, 2004 174 ELT 14 (SC), is on facts of the said case as is noticed from the observation in paragraph 6 of the said judgment which reads thus: "The appellant has drawn our attention to the composition of the six products and the uses in respect of each of these six products. This has not been doubted by the Tribunal nor indeed by the Departmental authority. The composition and the curative properties being admitted, it was not open either to the Department or the Tribunal to hold that the items were cosmetics merely by reason of the outward packing."
(3.) In the said case, there was no dispute about the composition and the curative properties of the six products. It had medicinal value and used for ayurvedic treatment. Hence, the same were treated as ayurvedic products.;