Bulk tea in tea chests or gunny bags was not treated as branded unit-container tea, leaving no excise duty for the period.

Bulk tea cleared in tea chests or gunny bags exceeding 20 kg, even if bearing the company's name or mark, was treated as not falling within "tea put up in unit container with a brand name" for the disputed period. On that basis, the earlier Gauhati High Court view was followed and the subsequent withdrawal notification was not applied to make those clearances dutiable for 2-6-1998 to 23-6-1998. The demand and penalty were set aside and consequential relief was granted to the assessee.

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Issues: Whether bulk tea cleared in tea chests or gunny bags exceeding 20 kg, bearing the company's name or mark, was liable to excise duty for the period 2-6-1998 to 23-6-1998, in view of the withdrawal notification issued on 24-6-1998.

Analysis: The issue was treated as covered by the earlier decision of the Gauhati High Court on the same question. On that view, bulk tea removed in tea chests or gunny bags did not fall within the expression "tea put up in unit container with a brand name" and was not exigible to duty for the disputed period. The later notification was, therefore, not treated as making such clearances dutiable for that interval.

Conclusion: The appeal was allowed and the demand and penalty were set aside, with consequential relief to the assessee.

Ratio Decidendi: Bulk tea cleared in tea chests or gunny bags did not amount to tea put up in unit containers with a brand name and, for that reason, was not liable to excise duty for the relevant period.

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