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TMI Blog1998 (7) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants is liable for levy of cess in terms of the provisions laid down under the Tea Act, 1953. The definition of Tea under Section 3(n) of the Tea Act is as follows :- Tea means the plant Camellia Sinensis (L) O. Kuntze as well as all varieties of the product known commercially as tea made from the leaves of the plant Camellia Sinensis (L)O. Kuntze including green tea . The authorities below have held that the instant tea manufactured and exported by the appellants is nothing but Tea in terms of the definition of the term Tea appearing in Section 3(n) of the Tea Act, 1953 and hence chargeable to cess in terms of the provisions of the Tea Act. It was contended by the Revenue in the show cause notices that instant tea powder falls un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cess under the Tea Act, 1953. The show cause notice extracts the definition and thereafter states that Instant Tea Powder satisfies the first condition of being commercially known as tea as indicated by the commercial name of the product. The condition that the product is made from the leaves of the plant also satisfies, therefore the show cause notice states that instant tea powder has to be treated as tea as far as Tea Act, 1953 is concerned and hence liable to cess. Therefore, demand was raised for the period 1-9-1995 to 29-2-1996 @15 paise per Kg. of the clearances made. 4. The appellants contended in their reply that show cause notice is patently illegal and erroneous. Section 25 of the Tea Act, 1953 imposes cess on tea produced in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the item to be leviable to cess as they are commercially known as tea and hence Instant Tea gets clearly covered in the Tea Act under the definition of Tea Act and for cess as per Section 35 of the said Act. 5. It was argued by the ld. Advocate that in terms of the final order No. E/136-169/98-D, dated 5-2-1988, the Tribunal dismissed the Revenue appeal in respect of tea waste on the ground that tea waste is not covered within the definition of tea and in this regard the Tribunal relied on the Board s letter F. No. 262/3/95-CX.8 (Circular No. 214/48/96-CZ), dated 23-5-1996. It was further argued that tea and instant tea are two independent products and in respect of tea the commercial understanding is that the tea are prepared from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or added flavouring matter provided that tea for export may contain added flavour under proper label declaration as provided in sub-rule (y) of Rule 42 : Provided further that the tea used in the manufacture of flavoured tea shall conform to the standards of tea. 6. Pointing out to the above specification, ld. Counsel pointed that the specification clearly indicates that the extract is to be obtained by boiling dried tea (to a constant rate of 100oC), therefore he submits in terms of these understandings, the item in question cannot be considered as tea. He submitted that in the present item, i.e. instant tea, the hot water soluble compound has been removed and so also cold insoluble compound to make it an instant tea so that it can get ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether instant tea is covered by the definition of the term tea appearing in Section 3(n) of the Tea Act which has already been extracted above. We notice that the definition of Tea refers to the plant Camellia Sinensis (L)O. Kuntze including green tea. The definition of instant tea under the Tea Waste (Control) Order, 1959 means `a water-soluble tea powder derived by dehydration of aqueous extract of tea . The Prevention of Food Adulteration Rules, 1955 also defines Tea and also gives specifications of the term Tea. On a careful perusal of these definitions from these three legislations, it is clear that tea as understood in the Tea Act and the Food Adulteration Rules, 1955 is different from instant tea as defined under the Tea Waste (Con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as noticed by us from samples produ-ced, which gets totally dissolved in the chilled cold water. The property of the tea and instant tea is different in as much as the `tea under the Tea Act and is prepared out of hot water and only the decoction is taken for consumption, while the `instant tea is completely dissolved in cold water and is not soluble in hot water. Therefore, the product is totally different and it cannot be called as a `Tea in terms of Section 3(n) of the Tea Act, which is very specific in its definition. It is also interesting to note that the Tribunal has already held that `tea waste is not `tea within the definition of the Act for the purpose of levy of cess. Therefore we have to hold that the Revenue has not prove ..... X X X X Extracts X X X X X X X X Extracts X X X X
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