H.R. Syiem, Member (T)

1. These appeals are against Order-in-Appeal No. C-589-590/BII-132-133/83 dated 17-3-1983. By this order the Appellate Collector of Central Excise ordered that the liquid paraffin IP grade should be assessed after labelling and packing under item 14E of Central Excise, since the product was of pharmaceutical grade and that the paraffin was sold in drum bearing labelling and marking with a monogram of the assessee. He held that as packing amounts to manufacture so far as tariff item 14E was concerned the product would be liable to further duty under tariff item 14E after packing and labelling. He accordingly held that the assessment made by the Asstt. Collector was in order. He also held that the assessee had misdeclared the product as a drug intermediate falling under item 68 and had suppressed the fact that a product satisfying the specification of tariff item 8 emerged. There was no time-bar in the demand as it would be covered by the longer period of 5 years. The Appellate Collector as well as the Asstt. Collector before him held that the liquid paraffin was also assessable under item 8 of the Central Excise Tariff before its packing and labelling.

2. A