Composite gutkha classification follows essential character, preventing segregation of tobacco for partial sales tax exemption.

A composite pouch sold as a single unit, containing separate portions of tobacco and pan masala, was treated as one marketed product for tariff classification. Applying Note 3 of Chapter 21, Note 6 of Chapter 24, and General Rule 2(a) of the First Schedule to the Central Excise Tariff Act, the essential character of the item was held to be pan masala containing tobacco, commonly known as gutkha or by another name. The components could not be split for separate treatment, and the tobacco portion could not be isolated to claim exemption under Entry 82 of Schedule I of the West Bengal Sales Tax Act, 1994.

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Issues: Whether the disputed pouch containing separate portions of tobacco and pan masala was classifiable as "pan masala containing tobacco" under Chapter 24 of the Central Excise Tariff Act, 1985, and whether the value attributable to tobacco could be exempted under Entry 82 of Schedule I of the West Bengal Sales Tax Act, 1994.

Analysis: The product, though packed in two separate portions, was not sold as two independent commodities but as a single marketed item. Under Note 3 of Chapter 21, pan masala excludes tobacco, while Note 6 of Chapter 24 specifically covers pan masala containing tobacco, commonly known as gutkha or by any other name. Applying General Rule 2(a) of the First Schedule to the Central Excise Tariff Act, 1985, an incomplete or disassembled article having the essential character of the complete article is to be classified as the complete article. The disputed item therefore retained the essential character of pan masala containing tobacco and could not be split for the purpose of exempting only the tobacco component.

Conclusion: The disputed product was correctly classifiable under Tariff Heading 2404.49 as pan masala containing tobacco, and the claim to exemption of the tobacco component under Entry 82 of Schedule I of the West Bengal Sales Tax Act, 1994 was rejected.

Ratio Decidendi: Where a composite marketed product containing tobacco and pan masala is sold as a single unit, tariff classification must follow the essential character of the complete article under the relevant interpretation rule, and the components cannot be separately isolated to claim partial exemption.

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