Tobacco powder classification favours non-manufactured tobacco entry over manufactured tobacco where direct precedent applies.

Tobacco powder obtained by crushing tobacco leaves, stems, stalks and butts was treated as non-manufactured tobacco under tariff sub-heading 2401.00, not manufactured tobacco under sub-heading 2404.90. The analysis followed earlier decisions of the same Bench holding that this form of tobacco remained within the non-manufactured entry, and rejected reliance on contrary observations in another decision because they did not override the directly applicable precedents. The classification issue was thus resolved in favour of the assessee.

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Issues: Whether tobacco powder obtained by crushing tobacco leaves, stems, stalks and butts was classifiable under tariff sub-heading 2401.00 as non-manufactured tobacco or under tariff sub-heading 2404.90 as manufactured tobacco.

Analysis: The issue was found to be covered by earlier decisions of the same Bench holding that tobacco powder of this nature fell under the non-manufactured tobacco entry. The contrary reliance on observations in another decision was not accepted as displacing the binding effect of the directly applicable precedents.

Conclusion: Tobacco powder obtained by crushing tobacco leaves, stems, stalks and butts was held classifiable under tariff sub-heading 2401.00 and not under tariff sub-heading 2404.90, in favour of the assessee.

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