2003 (3) TMI 482 - AT - Central Excise

Summary

Issues:
Whether Tea, including Tea Bags and Tea Waste put up in unit containers bearing a brand name, was dutiable to excise duty during a specific period.

Analysis:
The judgment dealt with the issue of excisability of Tea, including Tea Bags and Tea Waste, put up in unit containers bearing a brand name. The central question was whether these items were liable for excise duty during a particular period. The Union Government had made Tea dutiable from 2-6-98 by its Budget of 1998-99. However, a subsequent Notification No. 16/98-C.E. dated 24-6-98 withdrew this levy. The Tribunal confirmed a duty of Rs. 1,11,681.00 against the appellants for the said period, along with imposing a penalty of Rs. 10,000.00 for bulk tea cleared in tea-chests/gunny bags exceeding 20 Kgs. in weight bearing the company's name/mark.

The appellants argued that the issue had been previously decided by the Hon'ble High Court of Gauhati in an identical case. The High Court had ruled that there was no tax on bulk tea removed in tea chests or gunny bags during the relevant period. The High Court's decision clarified that such bulk tea did not fall under the definition of 'tea put up in unit container with a brand name,' thereby not subject to taxation. The Tribunal, in line with the High Court's ruling, held that there was no tax on tea removed in the manner described and set aside the impugned Order, allowing the appeal with consequential relief to the appellants.

Moreover, the Tribunal considered the earlier Order of the Tribunal following the decision of the Hon'ble Gauhati High Court, where the appeal was allowed. The Tribunal, after reviewing the submissions from both sides, concurred with the appellants' argument that the issue was conclusively covered by the Gauhati High Court's judgment. Consequently, the Tribunal set aside the impugned Order and granted relief to the appellants, disposing of the Stay Petition in the process.