Classification of pan masala with minor tobacco content falls under residuary tariff entry, not chewing tobacco.

Pan masala containing supari as the predominant ingredient and tobacco only in a minor proportion was not classifiable as chewing tobacco under Item No. 4(II)(5) of the First Schedule to the Central Excises and Salt Act. The governing test was whether tobacco was the main ingredient so as to confer the product its essential character as chewing tobacco; where tobacco was not principal, the residuary entry applied. A prior Tribunal ruling on a similar product and the Board's tariff advice both supported classification under Item No. 68, because the mere presence of duty-paid tobacco in pan masala did not by itself change the product's classification.

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Issues: Whether the product manufactured by the appellants was classifiable as chewing tobacco under Item No. 4(II)(5) of the First Schedule to the Central Excises and Salt Act, or as goods falling under the residuary Item No. 68.

Analysis: The product was described as pan masala and contained supari as the predominant ingredient, with tobacco only as a minor constituent. The relevant test applied was whether tobacco was the main ingredient so as to give the product its essential character as chewing tobacco. A prior Tribunal decision dealing with a similar product containing tobacco had held that where tobacco was not the principal ingredient, classification under the residuary entry was appropriate. The Board's tariff advice was also consistent with the view that the mere presence of duty-paid tobacco in pan masala did not by itself make the product chewing tobacco.

Conclusion: The product was not classifiable as chewing tobacco under Item No. 4(II)(5) and was correctly classifiable under Item No. 68.

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