Per V.K. Ashtana : This is an appeal against the Order-in-Appeal No. 124/98 dt. 31-3-1998 passed by the Commissioner (Appeals) wherein the question of excisability and classification of "Multinal Tablets" was considered and the Order-in-Original was upheld, which had classified the product under heading 3003.10. However, while the excisability of the product was upheld, the Order-in-Appeal changed the classification from Chapter 30 to 21. It also reduced the penalty from Rs.5,000/- to Rs. 2,000/- but held the product to be dutiable.

2. Heard Sri N. Venkatraman, learned advocate for the appellants, who submits as follows:-

(a) The appellants received vacuum dried spirulina powder for conversion into saleable retail packs of the powder as well as into converting the same as tablets. As far as the packing of the item received in the same form as powder is concerned, the department has not raised any dispute or demand. Therefore, the dispute is limited to the question whether the conversion of spirulina powder received by them into tablets which are packed by the name of "Multinal" amounts to manufacture and whether the said product would fall under Chapter 21, as the Order-in-Appea