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TMI Blog2013 (9) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... limitation was rejected - Held that:- Once it was concluded that production of retail packs pouches amounts to manufacture the pouches produced and marketed by the respondent would fall under the sub-heading 2403 of Chapter 24, which relates to other manufactured tobacco, and particularly classification entry No. 24039910 - There was no infirmity in the order of Commissioner (Appeals) classifying the product in question under entry No. 24039910 - there was no merit in the appeal filed by the department. It was clear that repacking of raw tobacco from bulk packs to retail packs amounts to manufacture - the appellants were purchasing bulk tobacco from the market and repacking the same into small pouches along with lime tube - The process ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder classification 24039910. Section V Chapter 24 subsequently, vide a letter which was received in the office of Assistant Commissioner, Central Excise, Division-I Karampura, New Delhi the respondent applied for addition in his central excise registration certificate informing the department that they are going to start packing of unmanufactured branded tobacco falling under Chapter 24 entry 24012090. Along with letter the appellant annexed enclosures indicating the list of raw material for production of the unmanufactured branded tobacco pouches and also the manufacturing process. The flow chart annexed to the letter indicated that the respondent would be purchasing raw unmanufactured chewing tobacco and packing material from the market ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r agreed that the view of the adjudicating authority that the tobacco pouches marketed by the respondent were covered under Chapter 24 entry No. 24039910. The appellate authority however, found that the demand was time barred. Accordingly, he set aside the order of adjudicating authority. 6. Being aggrieved of the aforesaid order of the Commissioner (Appeals), the Department has preferred this appeal. 7. Respondent has also filed Cross-Objection challenging the classification of the goods under entry 24039910, Chapter 24. 8. As regards the appeal, Shri Nagesh Pathak, ld. AR for the appellant has submitted that the impugned order holding that the demand is time barred, is not sustainable in law. It is submitted that this is a clear cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts including the list of raw material and the process. Perusal of photocopy of the list of raw material and the process would show that raw material used in the pouches is disclosed as loose unmanufactured tobacco, packing material and lime tube and the flow chart would show that the process of producing the small pouches comprised of filling the bulk raw unmanufactured tobacco, in small pouches along with lime tube and those pouches after packing were to be sold in wholesale packet. From this, it is apparent that nothing was concealed by the appellant and he had disclosed the entire process of manufacturing the small pouches of chewing tobacco to the department. Thus, in our considered view the Commissioner (Appeals) has rightly concluded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d manufactured tobacco substitutes; Homogenised or Reconstituted tobacco; tobacco extracts and essences smoking tobacco, whether or not containing tobacco substitute in any proportion. This entry also deals with the items other than the items detailed under the aforesaid sub-heading. 16. Now the question arises whether unmanufactured tobacco purchased in bulk and thereafter converted into small pouches by mixing it with a lime tube would amount to manufacture as defined under Section 2F of the Central Excise Act. To find an answer to this question, it would be helpful to refer to Chapter Note 3 of Chapter 24 which provide thus :- 3. In relation to products of Heading 2401 or 2402 or 2403, labelling or relabelling of containers or r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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