9911796707
TMI Blog2003 (3) TMI 563X X X X Extracts X X X X X X X X Extracts X X X X ..... t containing tobacco from 15-3-2001 and containing more than 85% betel-nut by weight; that Heading 21.06 of the Schedule to the Central Excise Tariff covers Pan Masala; that as per Note 3 to Chapter 21, Pan Masala means any preparation containing betel-nuts and any one or more of the ingredients, namely (1) lime and katha (catechu), but not tobacco, whether or not containing any other ingredients, such as cardamom, copra and methanol; that sub-heading 2404.49 covers Pan Masala containing Tobacco that Notification No. 16/98-C.E. (N.T.) dated 2-6-1998 fixed tariff values in respect of Pan Masala falling under Heading 21.06; that they paid the duty on Pan Masala manufactured by them not containing Tobacco in terms of Notification No. 16/98-C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct should not contain more than 10% betel-nut by weight; and (2) it should not contain tobacco in any proportion; that unless both these conditions are cumulatively satisfied, the exclusion clause would not apply; that this is evident from the expression and used in para 2 of the Notification; that admittedly the impugned Pan Masala contains more than 85% betel-nut by weight; that hence the first condition of Para 2 is not satisfied and consequently Para 2 has no application to the present case; that the Revenue's interpretation would make the entire Notification redundant and otiose and the Notification would not apply to any category of Pan Masala. He relied upon the decision in the case of Swarup Fibre Industries Ltd. v. Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification; that all the conditions specified in the Notification are to be complied before the Tariff values fixed thereunder can be applied to any Pan Masala; that the interpretation placed by the learned Advocate would make the words and not containing tobacco in any proportion in Para 2 of the Notification redundant and of no effect which is impermissible. 5.1 We have considered the submissions of both the sides. Notification No. 16/98-C.E. (N.T.) dated 2-6-1998 fixes tariff value in respect of the goods, specified in the Table annexed to Notification and falling under Sub-Heading No. 2106.00 of the Tariff. Para 2 of Notification makes it inapplicable to goods containing not more than 10% betel-nut by weight and not containing tobac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tariff :- 6. In this Chapter 24, Pan Masala containing tobacco , commonly known as gutkha or by other name, means any preparation containing betel-nuts and tobacco and any one or more of the following ingredients, namely : - (i) lime; and (ii) kattha (catechu) whether or not containing any other ingredients, such as cardamom, copra and menthol; 5.4. In Chapter 24, sub-Heading No. 2404.04 was also substituted as under : - Chewing tobacco and preparation containing chewing tobacco; Pan masala containing tobacco : 2404.41 -- Chewing tobacco and preparation containing chewing tobacco 2404.49 -- Pan Masala containing tobacco. 6. It is thus apparent that before amendment Pan Masala falling under Heading No. 21.06, as per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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