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TMI Blog1968 (6) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... rence are as under: The applicant is a manufacturing chemist who sells the preparation described as "lpco Dental Creamy Snuff" as per leaflet at annexure A. The preparation contains 55 per cent snuff, 40 per cent water, 2.5 per cent preservative and 2.5 percent flavouring agents and it is in the form of a paste filled in collapsible tubes, which are packed in cartons. The leaflet at annexure A describes the preparation as Ayurvedic Ipco Dental Creamy Snuff, Tobacco Paste. It was claimed that it strengthened teeth and sweetened breath. It was stated that the paste was highly effective in cases of even extreme dental pain such as toothache, swelling and decay of gums, bleeding from gums, etc. It was stated that it definitely strengthened wea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ems of the tobacco-plant, but does not include any part of a tobacco-plant while still attached to the earth." Therefore, so far as the definition is relevant for our purpose it defines "tobacco " to mean any form of tobacco whether manufactured or not. The expression "manufacture" is defined in section 2(f) of the said Central Excises and Salt Act, 1944, as under: "'Manufacture' includes any process incidental or ancillary to the completion of a manufactured product; and (i) in relation to tobacco, includes the preparation of cigarettes, cigars, cheroots, biris, cigarette or pipe or hookah tobacco, chewing tobacco or snuff;..." As entry 4 in the Schedule to the Central Excises and Salt Act, 1944, defines tobacco as any form of tobacco, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... substances had been added to convert this article into a different marketable commodity, but the snuff had lost one out of its original uses and it was now reduced to that article which would be applied to the gums, not with snuff-stick but with a tooth-brush or with finger. Besides, the essential characteristic of snuff had been lost in the process as it had ceased to be in the powdered form, when it would have been put to both these uses, viz., for inhaling through the nostrils or for application to the gums. The learned Advocate-General, therefore, argued that considering all these aspects it must be held that this article was not snuff and it had ceased to be excisable goods even within the meaning of entry 4 of the Central Excises and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... position in this connection. In Tungabhadra Industries Ltd. v. Commercial Tax Officer, Kurnool[1960] 11 S.T.C. 827., their Lordships had to consider whether hydrogenated groundnut oil (commonly known as vanaspati) was "groundnut oil" so as to get the benefit of deduction under the Madras General Sales Tax (Turnover and Assessment) Rules, 1939. By the process of hydrogenation a chemical change had taken place and the liquid oil had changed even its physical state. At page 834 their Lordships pointed out that the physical state did not determine the identity of the commodity as various kinds of oil harden and assume solid forms at low temperatures, but from that they could not be denied the name of oils because of their not being liquid. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Lordships in terms pointed out that the scrap iron purchased by the assessee was merely re-rolled into bars, flats and plates and they had been processed for convenience of sale as the raw materials were only re-rolled to give them attractive and acceptable forms and in such a process they did not lose their character as iron and steel. In State of Gujarat v. Sakarwala Brothers[1967] 19 S.T.C. 24., their Lordships had to consider whether "patasa" fell within entry 47 of Schedule A of the Act, which included in sugar all forms of sugar. At page 33 their Lordships pointed out that the Legislature had used the words "any form of sugar" and the entry included within its ambit all forms of sugar, that is to say, sugar of any shape or texture, c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e definition of manufacture given in the Central Excises and Salt Act, 1944, in relation to tobacco, such a dental creamy snuff which completely retains its essential character as snuff and which has only certain flavouring agents, preservative and water added, to change its physical condition in order to make it more acceptable to the customers when intended to use as snuff for application to the gums, there is no reason to hold that the snuff has lost its essential character and a totally different article has been produced which cannot claim exemption. In view of this settled legal position we are of the view that the Tribunal was wrong in holding that the snuff sold by the assessee was not tobacco. In the result our answer to the first ..... X X X X Extracts X X X X X X X X Extracts X X X X
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