2001 (2) TMI 675

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..... r (T)]. The issue involved in this appeal filed by M/s. VST Industries Ltd. is whether the set off of the duty paid on cut tobacco is to be limited to the quantity of cut tobacco used in the cigarettes cleared on payment of duty or on the entire quantity of cut tobacco cleared for manufacture of cigarettes out of which some cigarettes have been destroyed. 2. Ms. Maithili, ld. Advocate subm .....

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..... by the Supreme Court in many decisions such as Ranadey Micro Nutrients. 3. Opposing the appeal, Shri S. Kannan, ld. DR, submitted that the Board s instructions do not apply as the issue involved is not waste contained in the cut tobacco but the cut tobacco contained in the cigarettes on which duty is being paid. He also referred to the cross-objection filed by the department in which it is ment .....

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..... cigarettes and during the process of manufacture, some quantity of cigarettes because of being oily have been taken apart for being destroyed. The Board s Circular dated 6-7-1990 is very explicit in clarifying that the set off will be available on the quantity of cut tobacco which has been issued for the manufacture of cigarettes. In this case, the cut tobacco has been issued for manufacture of ci .....

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