COMMNR. OF CENTRAL EXCISE, DELHI vs M/S. ISHAAN RESEARCH LAB. (P) LTD..

The Supreme Court upheld the Customs Excise and Gold (Control) Appellate Tribunal's decision 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 10% duty, rather than as cosmetics at 40%. The Court affirmed that IRLP and its associated companies were not related persons under Section 4(4)(c) of the Central Excise Act, thus the price at which IRLP sold the products should be used for assessing value. The Court also agreed with the Tribunal's finding that the extended period of limitation was not applicable, leading to a re-quantification of duty based on the normal limitation period.