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2017 (3) TMI 647 - AT - Central ExciseSSI exemption - manufacture of branded manufactured tobacco falling under Chapter Heading 24039990 and Roasted Cut Supari falling under Chapter Heading 21069030 of the First Schedule to the CETA 1985 - whether the products are correctly classified and whether these are eligible for exemption under N/N. 8/2003-CE dated 01.03.2003 - Held that: - the cut roasted supari is correctly and legally classifiable under Tariff Item 08029012 of the CETA as betel nuts – split, attracting NIL tariff rate of duty. It may be mentioned that the process of roasting and cutting of supari undertaken by them does not amount to manufacture since such process has not been defined as amounting to manufacture in the said Chapter Note 6 of Chapter 21 of the CETA. It is evident that after cutting and roasting, betel nut remains a betel nut and no change occurs in the end product. Therefore, their cut roasted supari is correctly classifiable under Tariff Item No. 0802 90 12 of the CETA which attracts the NIL tariff rate of duty - tobacco product can be classified under Chapter heading 24039990 only when it contains betel nut and tobacco and any one or more of lime and kattha (catechu) whether or not contained any other ingredients. In the instant case, seized manufactured tobacco contains neither lime nor kattha, therefore, it cannot be classified under Chapter heading 24039990. At the maximum, it can be classified under the Chapter heading no. 24039910 as Chewing Tobacco which attracts NIL duty. The N/N. 8/2003-CE dated 01.03.2003 provides exemption to the chewing tobacco, chewing tobacco preparations and tobacco extract and essences falling under Heading 2403, other than those bearing a brand name - the seized manufactured tobacco is unbranded goods and, therefore, entitled for the SSI exemption - appeal dismissed - decided against Department.
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