TMI Blog1997 (4) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... ]. The appellant company herein undertook crushing of tobacco leaves, stems, stalks and butts and they convert them into powder form. Question involved in this appeal is whether the tobacco powder so obtained as mentioned above is liable to duty or not under Chapter 24 of the Central Excise Tariff Act, 1985. The appellants contention is that it falls under 2401.00 as unmanufactured tobacco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Excise Act, 1944 as also the specific definition in relation to tobacco, as mentioned in the Judgment reported in 1990 (48) E.L.T. - 115 at para 12 :- 12. The relevant portion of amended Section 2(f) of the Central Excises Salt Act reads as follows :- Manufacture includes any process incidental or ancillary to the completion of a manufactured product; and (i) in relation to tobacco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ought into existence by the appellants, is different from tobacco stems, stalks, butts and leaves and it is made fit for use in the nearby industry for the manufacture of gudakhu-form tobacco. Since the process of crushing/grinding of the aforesaid unmanufactured tobacco into tobacco powder has brought into existence a new product known to the market as such, therefore, it is a manufactured tobacc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rought on record by the Revenue that tobacco powder so produced by appellants is known in the market as a manufactured tobacco. This burden squarely rests on the Revenue if they want to levy duty under Tariff Heading: 24.04 on the said product under consideration. We also observe that there is a Judgment of the Tribunal in the case of Shree Chand Agarwal v. Collector of Central Excise reported in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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