APHALI PHARMACEUTICALS LTD. vs STATE OF MAHARASHTRA & ORS.

The Supreme Court examined the applicability of excise duty on the Ayurvedic product 'Ashvagandharist' under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, specifically Section 18 as amended by the Finance Act, 1962. The Court held that the product, which contains self-generated alcohol but is not consumable as an alcoholic beverage, should be classified under item 3(i) of the schedule, thus making it liable for excise duty. The Court ruled that the circular issued by the Government of Maharashtra was consistent with the amended provisions, affirming the excise duty levied on the appellant's product.