2004 (9) TMI 424 - AT - Central Excise

Summary

Issues: Classification of tobacco product under CET Heading 2404.90 as branded manufactured tobacco.

In this case, the issue at hand was the classification of a tobacco product under CET Heading 2404.90 as either branded manufactured tobacco or branded unmanufactured tobacco. The respondents, engaged in manufacturing SAI Bhaiaki Mishri, classified their product under CET Heading 2404.90 as branded manufactured tobacco. The Assistant Commissioner initially approved the classification as branded unmanufactured tobacco, leading to an appeal by the Revenue against the Commissioner (Appeals) decision in favor of the respondents.

Upon review, the Appellate Tribunal considered Chapter Note 2 to Chapter 24, which states that certain treatments to render a product marketable amount to manufacture. The product in question, labeled as "SAI Bhaiaki Mishri," met the criteria for deemed manufacture of a new product. Therefore, the Tribunal agreed with the lower appellate authority that the product should be classified as branded manufactured tobacco under CET 2404.90. As a result, the Tribunal found no merit in the Revenue's appeal, upheld the lower decision, and dismissed the appeal accordingly.

The judgment highlights the importance of considering specific chapter notes and criteria for deeming a product as manufactured when determining the classification of goods under the relevant tariff headings. In this case, the labeling of the product as "SAI Bhaiaki Mishri" played a crucial role in establishing the product as branded manufactured tobacco, leading to the dismissal of the Revenue's appeal.