2011 (9) TMI 876 - AT - Central Excise

Classification of goods - CETH 2404.99 or 3306.10 - Shaheen Bhajki Masheri - Held that - Following decision of Global Impex Versus Commissioner of Customs (Export) Nhava Sheva 2011 (7) TMI 933 - CESTAT MUMBAI - product Shaheen Masheri was correctly classified by the appellant under Chapter Heading No. 3306.10 - Decided in favour of assessee.

Summary

Issues: Classification of "Shaheen Bhajki Masheri" under Chapter Heading No. 2404.99 as other manufactured tobacco or Chapter Heading No. 3306.10 as tooth powder.

The judgment involves two appeals challenging Order-in-Original No. 62-68/Demand/Commr-I/2005 passed by the Commissioner of Central Excise & Customs, Vadodara-I. The learned Commissioner confirmed the duty demand and penalties imposed on the product "Shaheen Masheri" under Chapter Heading No. 2404.99 as other manufactured tobacco. The appellant argued for classification under Chapter Heading No. 3306.10 as tooth powder, citing exports and previous legal proceedings. The issue revolved around the classification of "Shaheen Bhajki Masheri" manufactured by the appellant. The appellant contended that the product should be classified as tooth powder under Chapter Heading No. 3306.10, benefiting from a duty exemption. The Revenue argued against this classification, claiming the product was tobacco-based and harmful, lacking a necessary license under the Drugs & Cosmetics Act, 1940. The appellant provided legal precedents and orders supporting their classification stance, including the Hon'ble Supreme Court's judgment in Civil Appeal No. 5816/2011.

The Tribunal considered previous orders and legal precedents, including the classification of the same product under Chapter Heading No. 3306.10 in a related case. The Tribunal noted that the issue of classification had been settled by the Hon'ble Supreme Court and previous appellate decisions, affirming the classification under Chapter Heading No. 3306.10 as tooth powder. The Tribunal found that the product "Shaheen Masheri" was correctly classified under Chapter Heading No. 3306.10, overturning the impugned Order-in-Original dated 28-11-2005. The decision was based on the binding precedent order dated 1-8-2011 by the Hon'ble Supreme Court, providing consequential relief to the appellant. The judgment emphasized the finality of the classification issue and the appellant's correct classification under Chapter Heading No. 3306.10 as tooth powder.