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2019 (12) TMI 334 - AT - Central ExciseClassification of goods - chewing tobacco, perfumery compounds etc. - whether classified as “Chewing Tobacco” falling under Chapter Heading No.2403 99 10 or to be classified as “Jarda Scented Tobacco” falling under Chapter Heading 2403 99 30? - HELD THAT:- The appellants were manufacturing the goods under the brand name of “Baba” and filed various declarations in terms of the provisions of ‘Chewing Tobacco and unmanufactured Tobacco Packing Machine (Capacity Determination and Collection of Duty) Rules, 2010’ by describing the product as Chewing Tobacco. Such declarations were scrutinized by the Deputy Commissioner who fixed the capacity of the machines having the speed for the manufacture of Jarda Scented Tobacco. Chewing Tobacco and Jarda Scented Tobacco are classifiable under two different Tariff Items. The test report of the chemical examiner clearly reveals that the product in question is not Chewing Tobacco but the same is Jarda Scented Tobacco. Zarda is admittedly a variety of Chewing Tobacco but keeping in view two separate headings for Chewing Tobacco and Jarda Scented Tobacco leads us to conclude that the two products are different products classifiable under different tariff items and have to be assessed accordingly going by the ingredients of the product - such ingredients stand revealed by the test report of the chemical examiner supported by the statement of Shri Shashi Kumar Maheshwari. The issue of classification of ‘Baba’ Zarda stands finally decided by the Hon’ble High Court of Orissa in the case of MISHRA ZARDA TRADERS VERSUS STATE OF ORISSA [1987 (1) TMI 455 - ORISSA HIGH COURT]. While dealing with classification of the said product, the Hon’ble High Court observed that ‘Baba’ Zarda Zafrani Patti Scented Tobacco is essentially Zarda and not Chewing Tobacco. The same is leviable to tax. It is the classification of the product which is relevant and the subsequent consequences of the same resulting in confirmation of demand of duty are result of the decision on the classification. Whether in the case of Sales Tax or in the case of Central Excise, once the product stand held as Jarda Scented Tobacco by the Hon’ble High Court and there being no contra decision of any other High Court, the ratio of the said decision would be fully applicable to the facts of the present case. The appellants’ final product declared by them as Chewing Tobacco is essentially Jarda Scented Tobacco and stands correctly classified by the Lower Authorities under Tariff Items No.2403 99 30. As a consequence of classification of goods under said Heading, the confirmation of demand of duty by the Lower Authorities is proper and appropriate. Appeal dismissed.
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