AARTI DRUGS LTD. Vs. COMMISSIONER OF CENTRAL EXCISE, THANE-II
LAWS(CE)-2015-7-35
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on July 24,2015

Aarti Drugs Ltd. Appellant
VERSUS
Commissioner of Central Excise, Thane -II Respondents




JUDGEMENT

P.S.PRUTHI,J - (1.)THIS appeal is directed against Order -in -Original No. II/PKA/COMMR/Th -II/2012 dated 21.5.2012 passed by the Commissioner of Central Excise, Thane -II.
(2.)The main issue in this appeal is the classification of the product Niacin (feed grade) manufactured by the appellant. The appellant manufacture bulk products like Niacin falling under Chapter Heading 29.36 of the Central Excise Tariff Act, 1985. They also manufacture Niacin (Feed Grade) which is used in animal feed and classify it under Tariff Item 23099090 and clear the same at nil rate of duty. Whereas Niacin is 99% pure and used in pharmaceutical formulations as vitamin the purity of Niacin (Feed Grade) is 95% and it is further mixed with wheat powder for use as animal feed. Under the impugned order, the Commissioner classified the Niacin Feed Grade under Tariff Item 29362920 and confirmed the duty demand of Rs. 65,43,700/ - invoking the extended time period. He also imposed equivalent penalty under Section 11AC of the Act. The goods valued at Rs. 6,54,57,800/ - cleared without payment of duty were subjected to fine of Rs. 33,00,000/ - in lieu of confiscation under Section 34 of the Act.
(3.)HEARD both sides.
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