JUDGMENT

ALTAMAS KABIR,J.

The appellant is a public limited company which manufactures a variety of cosmetics and toilet preparations, including hair dyes. The appellant is manufacturing such "liquid hair dyes" since May, 1974, when there was no specific entry relating to "hair dyes" under the Central Excise Tariff. However, "hair lotion" is specified under Tariff Item 14F. Since May, 1974, till 13th July, 1982, the Excise Department did not raise any claim in regard to "liquid hair dyes" under Tariff Item 14F and no excise duty was demanded in respect of the said item.

2. With effect from 1st March, 1975, Tariff Item 68 was introduced as a residuary entry in the Central Excise Tariff relating to "all other goods not elsewhere specified". As a result, all goods became excisable. Inasmuch as, it had been accepted by the Excise Department that "liquid hair dye" did not fall under Tariff Item 14F, the appellant started paying duty on the said product under Tariff Item 68 with effect from 1st March, 1975. Apparently, the classification list, which was submitted by the appellant, classifying the aforesaid product under Tariff Item 68, was also duly approved.

3. In relation to the aforesaid product, for the first time, the respondent No.1 issued a general show-cause notice to the appellant on 13th July, 1982, asking the appellant to show-cause as to why its "liquid hair dye" should not be classified under Tariff Item 14F and charged with duty accordingly. The notice, however, stated that pending determination of the question raised, the classification of the aforesaid product would continue to be under Tariff Item 68 on a provisional basis and that the appellant would have to execute a bond for provisional assessment under Rule 98. The appellant responded to the notice and filed its written submissions. Despite the above, four specific demand notices dated 2nd August, 1982, 11th October, 1982, 27th December, 1982 and 17th February, 1983, were issued to the appellant. The demand notice dated 11th October, 1982, was subsequently dropped. The remaining three notices covered the period from January, 1982 to December, 1982.

4. The defence taken by the appellant in its reply to the show cause notice relied, to a large extent, upon a judgment of a learned Single Judge of the Bombay High Court in the case of Subhash Chandarnishat vs. Union of India, reported in [1979 ELT (J) 212]. The said matter involved two products known as "Vasmol Emulsified Hair Oil" and "Vasmol Pomade". The case made out by the appellant in that case was that both the aforesaid products were hair dyes meant for the purpose of darkening hair and could not, therefore, be classified under Tariff Item 14F. On a consideration of the material placed before him, the learned Judge held that "Vasmol Emulsified Hair Oil" and "Vasmol Pomade" did not fall under Tariff Item 14F.

5. The appellants submission was rejected by the respondent No.1 by his order dated 24th May, 1983, by which he held that the appellant was liable to pay the excise duty as claimed under the three notices referred to above. Consequent to such determination, a show-cause-cum-demand notice dated 2nd June, 1983, was also served on the appellant demanding the excise duty for the subsequent period from January, 1983 to March, 1983.

6. Being aggrieved by the said two notices and the demand notice, the appellant moved the High Court in its writ jurisdiction challenging the said two notices dated 24th May, 1983 and 2nnd June, 1983 and also prayed for appropriate interim orders with regard to the demand notice. The said writ petition was admitted and interim orders were passed thereon.

7. Elaborate submissions were made on behalf of the parties before the High Court regarding the classification of the appellants product as a "hair lotion" which would bring it within the ambit of Tariff Item 14F. Apart from the nature and character of the product in relation to the expression "hair dye" used in Tariff Item 14F, it was a