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TMI Blog2005 (5) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... uty paid tea of different varieties and converts such teas into black tea. The teas so received as input had been subjected to tea cess also. The appellant availed of Modvat credit facility for payment of duty on black tea manufactured by it. However, no cess was paid on the black tea manufactured and cleared. The impugned order has demanded cess of about Rs. 2 lakhs in respect of black tea so cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the judgment in the Tata Tea case, reliance is on para 6 which reads as under : "6. In order to satisfy the definition of 'tea' under Section 3(n), a product be commercially known as tea and it should be made from the leaves of the plant of Camellia Sinensis (L) O. Kuntze. 'Instant tea' satisfies both these conditions By the very name, the product namely 'instant tea' conveys 'that it is a 'tea' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the leaves of the plant Camellia Sinensis (L) O. Kuntze. In these circumstances the 'instant tea' is covered by the definition of tea within the meaning of Section 3(n). Once 'instant tea' falls within the definition of Section 3(n), a cess can be levied on it under Section 25 of the Act. In our view, the Commissioner (Appeals) was right in upholding the order of the Assistant Commissioner bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prospective and therefore, cess will be payable for the period prior to the date of Notification (11-11-1999). With regard to the Notification, the submission of the learned Counsel for the appellant is that it can be treated only as clarificatory. The appellant has further pointed out that with regard to cess under other statute too cess is being collected only at one stage of production. Relian ..... X X X X Extracts X X X X X X X X Extracts X X X X
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