1999 (8) TMI 387

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..... i T. Premkumar, SDR, for the Respondents. [Order per : Archana Wadhwa, Member (J)]. - All these appeals are being disposed of by a common Order as all of them arise out of the same impugned Order of the Commissioner of Central Excise, Calcutta-I. Duty of Rs. 28,67,482.88 has been confirmed against the first appellants, M/s. Iswar Grinding Mills on the clearance of tobacco powder/granules by hol .....

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..... 2. Whereas the Revenue's contention is that the activity undertaken by the appellants results in emergence of manufactured tobacco classifiable under sub-heading 2404.90, the appellants' contention is that the same remains manufactured tobacco classifiable under Tariff Heading 24.01. 3. Shri S.K. Roychowdhury, learned Advocate appearing for the appellants submits that the issue is no mo .....

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..... so heard Shri T. Premkumar, learned SDR who reiterated the reasonings of the authorities below. 5. After carefully considering the submissions on both sides and going through the impugned Order, we find that all these judgments relied upon by the learned Advocate, were considered by this Bench in a recent Judgment delivered in the case of Shri Shrikant Prasad and Others, Vide Order Nos. A-92 .....

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..... tinction which the Commissioner has tried to draw between the decision of Shree Chand Agarwal and the facts of the present case, is not appreciable inasmuch as the classification of a product will not change depending upon its use in the manufacture of different final products. Whether the tobacco powder is used further in the manufacture of Gul or Hooka Tobacco Paste or Gudakhu, will not affect t .....

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..... various judgments that crushing/grinding of tobacco results into unmanufactured tobacco classifiable under Heading 24.01 attracting nil rate of duty. Accordingly, following the ratio of the above decisions, the appeal of M/s. Iswar Grinding Mills is allowed. 7. As the appeal of the main appellants has been allowed, there is no justification for imposition of penalty either on the appellant .....

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