2025-VIL-988-CESTAT-KOL-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise - Manufacture of Homoeopathic and Ayurvedic medicines containing alcohol – SSI exemption, Demand of duty - Appellant is engaged in manufacture of different categories of Homoeopathic and Ayurvedic medicines – Revenue issued show cause notice to Appellant proposing demand of Excise Duty, by invoking extended period of limitation – Adjudicating authority confirmed demand along with interest and penalty – Whether Appellant is liable to pay Excise Duty on goods manufactured by it – HELD – To prepare External Massage Oil and Hair Oil, alcohol is required to be used as has been specified in Pharmacopoeia. Though alcohol content is not directly mentioned in outer label, still in ingredients within, alcohol has been used – So long as Appellant is following homeopathic/ayurvedic pharmacopoeia procedure requiring usage of alcohol and is using the same in preparation of External Massage Oil and Hair Oil, irrespective of either alcohol content is printed in label or not, said goods go out of purview of levy of Excise Duty – Appellant is not contesting the duty liability in respect of Oral Capsule, therefore, their only submission is towards turnover in respect of Oral capsule – As per Appellant, if total turnover on account of overall exports and specifically that of dutiable item Oral Capsules is considered, actual turnover would be much less than threshold limit specified for SSI exemption. Since turnover is much below threshold limit, appellant would be eligible for SSI exemption – On account of SSI exemption, no Excise Duty is required to be paid by Appellant though they are manufacturing dutiable goods, i.e Oral Capsules – Since Revenue has not made out any case of willful suppression with an intent against Appellants, invoking of extended period of limitation is not sustainable – Demand confirmed in impugned order is set aside on ground of merits as well as limitation – The appeal is allowed
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