Unmanufactured chewing tobacco relabelling was outside excise duty before the 1995 amendment to Chapter 24

Relabelling of unmanufactured chewing tobacco in October 1986 was not chargeable to excise duty under Chapter Note 2 of Chapter 24, because the levy on branded unmanufactured tobacco was introduced only by an amendment effective from 16-3-1995. Since the dispute related to a period well before that amendment, the chapter note had no application to unmanufactured tobacco as it stood in 1986. The activity was therefore outside the cited duty provision, and the Revenue's challenge failed.

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Issues: Whether relabelling of unmanufactured chewing tobacco falling under Tariff Heading 25.01 in October 1986 was liable to excise duty on the basis of Chapter Note 2 of Chapter 24.

Analysis: Duty on unmanufactured tobacco had been withdrawn in 1979, and the levy on branded unmanufactured tobacco introduced by amendment to Chapter Note 2 of Chapter 24 came into force only on 16-3-1995. The dispute related to a period well before that amendment. Chapter Note 2 of Chapter 24 therefore had no application to unmanufactured tobacco as it stood in October 1986.

Conclusion: The activity was not liable to duty under the cited chapter note, and the Revenue's appeal failed.

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