Cured tobacco classification clarified: jaggery water treatment did not convert unmanufactured tobacco into chewing tobacco.

Tobacco treated with jaggery water to prevent moulding and drying remained cured tobacco and did not amount to manufacture of chewing tobacco. The HS Explanatory Notes to Heading 24.01 supported classification of such cured tobacco as unmanufactured tobacco. On that basis, the product was held classifiable under Heading 24.01 and not under Sub-heading 2404.41, and the Revenue's appeal failed.

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Issues: Whether the tobacco product, after treatment with jaggery water for preventing moulding and drying, was classifiable as unmanufactured tobacco under Heading 24.01 or as chewing tobacco under Sub-heading 2404.41.

Analysis: The respondents were only curing the tobacco outside their premises by treating it with jaggery water to prevent moulding and drying. Such treatment resulted only in cured tobacco and did not amount to manufacture of chewing tobacco. The classification was supported by the HS Explanatory Notes under Heading 2401, which continue to cover such cured tobacco as unmanufactured tobacco.

Conclusion: The product was correctly classifiable as unmanufactured tobacco under Heading 24.01 and not as chewing tobacco under Sub-heading 2404.41. The appeal of the Revenue failed.

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