1998 (3) TMI 305

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....C.E., dated 20-3-1990. 2. The respondents, M/s. Godfrey Phillips (I) Ltd., were engaged in the manufacture of cigarettes. In addition to the clearance on payment of duty, they were also drawing the loose cigarettes for test purposes and research development within the factory. Under Notification No. 34/87-C.E., dated 1-3-1987, the effective rates of duty were prescribed on the cigarettes being cigarettes packed in approved packages. As the cigarettes drawn for test purposes and research development were not packed in approved packages, the respondents were paying central excise duty at the tariff rate in respect of such cigarettes drawn for test purposes and research development. On 20-3-1990, Notification No. 34/87-C.E. was rescind....

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....e Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts cigarettes of the description specified in column (1) of the Table below and falling under sub-heading No. 2403.11 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), from so much of the duty of excise leviable under the said Schedule and the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) as is in excess of the amount calculated at the rates specified in the corresponding entry in column (2) of the said Table : Provided that the amount of duty so levied shall be apportioned in the ratio 65 : 35 betw....

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....bsp;   (d) exceeding 85 millimetres but not exceeding 100 millimetres Seven hundred and fifty rupees per one thousand cigarettes. 5. It is seen from a reading of this notification that the only condition prescribed is that the cigarettes should be falling under sub-heading No. 2403.11 of the Central Excise Tariff. The rate of duty is related under this notification to the length of the cigarettes. The rate of duty was specific in terms of 1,000 cigarettes. 6. Shri Satnam Singh, SDR, referred to Rule 93 of the Central Excise Rules to plead that the cigarettes were required to be delivered from the factory in packed condition. In case the cigarettes were not at all delivered in packed condition, then he contended....