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TMI Blog2017 (11) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... achets of chewing tobacco (Filter Khaini) of 0.25 grams each. Such sachets are without any name or MRP. 10 such sachets are thereafter manually packed in the pouches. Such pouch contains the trade name MRP and other details. Each one of the pouch is priced at Rs. 5/. The dispute in the present case is relating to the method of valuation, for Excise duty purpose, to be adopted for such products. 3. The respondent claims, that they are covered by regular transaction value based duty in terms of Section 3 read with Section 4. The Revenue entertained a view that they are covered by Chewing Tobacco and Unmanufactured Tobacco Packing Machine (Capacity Determination and Collection of Duty) Rules, 2010 read with Notification 14/2012 CE dated 17/03 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt had violated these rules in order to avoid payment of duty under Section 3A of the Central Excise Act, 1944. iv. The Commissioner (Appeals) overruled the legal provisions in this case and without following the object and spirit of Compounded Levy Scheme set aside the assessment order of the Original Authority. As such the revenue pleaded that the impugned order be set aside and the Original Order be restored. 5. The Ld. Counsel for the respondent submitted that the impugned order correctly appraised the legal provisions applicable to the facts of the present case. He drew our attention specifically to Rule 5 of the said rules. The said rule will apply only to notified goods having retail sale price and are intended for retail sale. Ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mentioned therein. The explanation 5 in the notification makes it abundantly clear that for the purpose of said notification 'Filter Khaini means chewing tobacco which is packed in sachets of filter paper or fabric before being packed in pouches with the aid of packing machines'. The contention of the revenue is that the aid of packing machines should be for sachet and not for pouch. We are not able to appreciate such interpretation of the explanation. A plain reading of the explanation shows that packing in pouches should be with the aid of packing machines. In this contention, we also refer to clarification issued by the board vide letter dated 53/2010. It was categorically clarified that packing of pouches of notified goods and further ..... X X X X Extracts X X X X X X X X Extracts X X X X
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