1998 (3) TMI 242 - AT - Central Excise

Summary

Issues:
1. Whether tea cess is leviable on tea waste under the Tea Act, 1953.

Analysis:
The judgment by the Appellate Tribunal CEGAT, New Delhi dealt with the issue of whether tea cess is leviable on tea waste under the Tea Act, 1953. The appeals involved a situation where the respondents, engaged in tea manufacturing, removed tea waste for instant tea production, and the Revenue demanded cess on the tea waste. The Collector, C. Ex. (Appeals) held that tea cess is not applicable to tea waste. The Revenue contended that cess is leviable on tea waste cleared for instant tea meant for export, as it is not exempted under Central Excise Rules, 1944. The Tribunal referred to a previous case where it was held that no cess is leviable on tea waste as per the definition under Section 25 of the Tea Act, 1953. The Tribunal noted that the excisability of tea waste was not disputed in the appeals.

The Tribunal analyzed the provisions of the Tea Act, 1953 and the Central Excise Tariff to determine the applicability of cess on tea waste. It was highlighted that if tea waste is denatured, it is exempt from Central Excise Duty under a specific notification. The Tribunal also referred to instructions from the Ministry of Commerce and the Central Board of Excise & Customs stating that no cess is leviable on tea waste as defined under the Tea Act, 1953. The Tribunal emphasized that the definition of tea waste under Section 25 of the Tea Act excludes it from cess liability. Relying on the precedent set in a similar case, the Tribunal dismissed the Revenue's appeals, concluding that no cess is leviable on tea waste as per the Tea Act, 1953.

In conclusion, the judgment clarified that tea waste is not subject to cess under the Tea Act, 1953, based on the statutory definition provided in Section 25 of the Act. The Tribunal's decision was consistent with previous rulings and official instructions from relevant authorities, affirming that no cess is applicable to tea waste. The appeals filed by the Revenue were therefore dismissed based on the established legal position regarding the non-leviability of cess on tea waste as per the Tea Act, 1953.