1997 (6) TMI 102

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....spondent. [Order per : J.H. Joglekar, Member (T)]. - The appellants were engaged in the activity of purchasing duty paid snuff in the bulk form from various manufacturers, mixing together and thereafter selling resultant snuff in bulk as well as in smaller packages ranging from 10 gms. to 500 gms. They had not paid any duty on such clearances. A show cause notice was, therefore, issued to th....

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.... 3. Shri A.K. Madan, learned SDR, appearing for the Revenue stated that size of the containers in retail market would vary as per requirement of the consumers. Consumers of snuff may purchase a packet of 500 gms. contents also. He stated that mere argument that 500 gms. pack was not meant for retail sale was not valid. He further referred to cited Chapter Note and stated that in the Note the....

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....nuff is one of various forms in which tobacco is sold. The other forms are Zarda, Cigarettes and Biris. It is true that minor quantity of snuff is taken by the consumer at one time. The note specifically states that activity of repacking should result in "retail packs", for the activity to become a process of manufacture. Ordinarily, a consumer of snuff would buy in retail small quantity. There is....

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....me of the snuff manufactured by the appellants would qualify manufacture as retail purchase of manufacture of their other products would qualify on the parameter of blending the products to make them marketable. On this observation, we hold that activity undertaken by the appellants did amount to manufacture and that resultant products would be liable to duty. We uphold the order of confirmation o....