2004 (2) TMI 432 - AT - Central Excise

Summary

Issues Involved:
Classification of Pan Masala containing tobacco under Central Excise Tariff - Heading 24.04 or Heading 21.06.

Analysis:
The appeal involved the classification of Pan Masala containing tobacco under the Central Excise Tariff, specifically whether it falls under Heading 24.04 as confirmed by the Commissioner (Appeals) or under Heading 21.06 as claimed by the Appellants. The Appellants argued that as per Note 3 to Chapter 21 of the Tariff, Pan Masala includes tobacco and should be classified under Heading 21.06. They also contended that the Supreme Court's decision on a similar matter under a different Act should not apply to their case. Additionally, they requested that if duty is to be paid under Heading 24.04, the price should be considered as cum-duty price based on a previous Tribunal decision.

In response, the Revenue argued that tobacco products are classified under Chapter 24 of the Central Excise Tariff and that Pan Masala containing tobacco should be classified accordingly. They emphasized that the Supreme Court's decision is binding and that a previous Tribunal decision also supported the classification under Heading 24.04.

After considering the arguments, the Tribunal noted that Pan Masala containing tobacco had been held to be a tobacco product chargeable under Chapter 24 of the Tariff based on the Supreme Court's decision. Therefore, the product was classified under Heading 24.04, rejecting the appeal on this ground. However, the Appellants were granted the benefit of statutory deduction by treating the price as cum-duty price as per a previous Tribunal decision. The Adjudicating Authority was directed to re-compute the duty amount for the Appellants to discharge. The appeal was disposed of accordingly.