TaxTMI 
TaxTMI 
2002 (5) TMI 235
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....evy of cess under Section 25 of the Tea Act, 1953. 2. The respondent is engaged in the manufacture of 'instant tea' . Show cause notices were issued to the respondent as to why on 'instant tea' cleared by them during the given period, cess should not be levied under Section 25 of the Tea Act, 1953 (for short the Act). The reply of the respondent was that 'instant tea' was not 'tea' falling within the definition of Section 3(n) of the Act and that the show cause notices issued were patently illegal. The Assistant Commissioner confirmed the demand. The respondent filed appeal to the Commissioner (Appeals), Cochin, who upheld the order of the Assistant Commissioner. The respondent took up the matter before the CEGAT which set aside the o....
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.... does not fall within the definition of 'tea' under the Act. 5. In order to appreciate the rival contentions and to record an answer to the question raised in the beginning, it is useful to notice the relevant provisions of the Act, which are extracted below :- "S. 3(n) - "tea" means the plant Camellia Sinensis (L) O. Kuntze as well as all varieties of the product known commercially as tea made from the leaves of the plant Camellia Sinensis, (L) O. Kuntze including green tea." "S. 25 - Imposition of cess on tea produced in India - (1) There shall be levied and collected as a cess for the purposes of this Act a duty of excise on all tea produced in India at such rate not exceeding fifty paise per kilogram as the Central Government ma....
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.... prepared/used instantaneously. Merely because the product is known as 'instant tea', it does not cease to be known commercially as 'tea'. Whether tea is consumed as hot beverage or a cold beverage depending upon one's liking and taste, it does not make any difference in deciding whether it is a tea falling within the definition of Section 3(n) of the Act. In our view, the manner of preparation of tea and the process of manufacture of 'instant tea' powder cannot take away 'instant tea' out of definition of 'tea' under the Act. Ultimately 'instant tea' is produced from the leaves of the plant Camellia Sinensis (L) O. Kuntze. In these circumstances, the 'instant tea' is covered by the definition of tea within the meaning of Section 3(n). Once....