Tariff classification of gutkha follows its status as a tobacco product, placing it under Chapter 24 rather than Heading 2106.

Law declared that gutkha is a tobacco product is binding for tariff purposes, so pan masala containing tobacco cannot continue to be treated as a Chapter 21 product. On that basis, the article falls under Chapter 24 of the Central Excise Tariff, which covers tobacco and manufactured tobacco substitutes, rather than Heading 2106. The operative effect is that classification follows the legal character of gutkha as tobacco, not the pan masala description in Chapter 21.

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Issues: Whether pan masala containing tobacco, commonly known as gutkha, was classifiable under Heading 2106 of the Central Excise Tariff or under Chapter 24 / Heading 2404 as a tobacco product.

Analysis: The product description in Chapter 21 and Note 3 thereto covered pan masala containing tobacco at the relevant time, but the governing consideration was the legal character of gutkha as declared by the Supreme Court. The Supreme Court had held that gutkha is a tobacco product covered by the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957, and the law declared by the Supreme Court is binding under Article 141 of the Constitution of India. On that basis, pan masala containing tobacco could not continue to be treated as falling under Chapter 21 and had to be treated as classifiable under Chapter 24 of the Central Excise Tariff, which deals with tobacco and manufactured tobacco substitutes.

Conclusion: Pan masala containing tobacco was held classifiable under Chapter 24 and not under Heading 2106 of the Central Excise Tariff.

Ratio Decidendi: The law declared by the Supreme Court that gutkha is a tobacco product is binding and governs tariff classification, with the result that pan masala containing tobacco falls under the tobacco chapter of the Central Excise Tariff rather than the pan masala entry in Chapter 21.

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