In the case before CESTAT AHMEDABAD, the issue was the ...

CESTAT: Tobacco supplied in retails pack to be classified under CTH 2401, not 2403. Extended period not applicable.

Case Laws     Central Excise

May 25, 2024

In the case before CESTAT AHMEDABAD, the issue was the classification of tobacco supplied in retail packs under the Central Excise Tariff Act. The appellant claimed it should be classified under CTH 2401, while the Revenue argued for classification under 2403. The tribunal held that the product, unmanufactured tobacco in cut leaves form, remained the same even after repacking into retail packs. As it did not undergo manufacturing transformation, it was correctly classified under CTH 2401. The tribunal also found that there was no suppression of facts or misdeclaration by the appellant, so the demand under the extended period of limitation was not sustainable. The appeal was allowed, and the impugned order was set aside.

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