Commnr. Of Central Excise, Delhi vs M/S. Ishaan Research Lab. (P) Ltd.& Ors

The Supreme Court upheld the decision of the Customs Excise and Gold (Control) Appellate Tribunal, affirming that 22 products manufactured by M/s. Ishaan Research Lab Private Limited are classified under Central Excise Tariff Sub-heading 3003.30 as 'Ayurvedic medicines' attracting a duty of 10% ad valorem, rather than the 40% claimed by the Revenue Department for cosmetics. The Court ruled that the entities involved were not related persons under Section 4(4)(c) of the Central Excise Act, and thus the price of IRLP should be used for assessing value. The extended period of limitation was deemed inapplicable, leading to a re-quantification of duty within the normal six-month period, and penalties imposed were set aside.