https://www.taxtmi.com/caselaws?id=793764 Mere processing of tobacco by sprinkling jaggery water, without adding flavours or other materials, did not amount to manufacture because it did not create a new product with a distinct name, character and use. The Court relied on the settled manufacture test, the HSN Explanatory Notes on unmanufactured tobacco, and the same principle reflected in section 2(72) of the CGST Act, 2017. The product therefore remained classifiable as unmanufactured tobacco, and the enhanced compensation cess demand, penalty and related levy order were unsustainable and were set aside. en-us Mon, 01 Jun 2026 00:00:00 +0530 Tue, 23 Jun 2026 08:08:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=793764 Mere processing of tobacco by sprinkling jaggery water, without adding flavours or other materials, did not amount to manufacture because it did not create a new product with a distinct name, character and use. The Court relied on the settled manufacture test, the HSN Explanatory Notes on unmanufactured tobacco, and the same principle reflected in section 2(72) of the CGST Act, 2017. The product therefore remained classifiable as unmanufactured tobacco, and the enhanced compensation cess demand, penalty and related levy order were unsustainable and were set aside. Case-Laws GST Mon, 01 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=793764