9911796707
TMI Blog2004 (3) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... pondent. [Order per : K.C. Mamgain, Member (T)]. - This is an appeal filed by M/s. VST Industries Ltd., Hyderabad against Order C. No. IV/16/188/99-C.Ex., dated 13-8-2001 passed by the Commissioner of Central Excise, Hyderabad-III Commissionerate. 2. Smt. L. Maithili, Advocate, appearing for the appellants pleaded that the appellants are manufacturers of Cigarettes. During the process of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inal product has not emerged. Therefore duty on cut-tobacco has to be paid by them. She stated that the finding of the Commissioner is not correct as the oily cigarettes are dutiable goods but the remission of duty has been sought by them only on the ground that these are unfit for human consumption. Therefore, the cut-tobacco is actually gone into the manufacture of dutiable goods and they are el ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DR, appearing for the Revenue pleaded that since in this case cut-tobacco had gone into the manufacture of oily cigarettes on which the duty has been remitted, the appellants are required to pay the duty on the cut-tobacco used in the manufacture of oily cigarettes. 4. We have carefully considered the submissions made by both the sides. We find that the Commissioner has accepted that the cut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tended use as provided in Notification No. 121/94, dated 11-8-1994. The oily cigarettes are neither exempt from duty nor chargeable to 'NIL' rate of duty. Therefore denial of exemption to cut-tobacco under Notification No. 121/94, dated 11-8-1994 is not correct. It has been laid down in case of M/s. Kirloskar Electric Co. v. CCE, Bangalore (supra) that assessee is entitled to Modvat credit on inpu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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