2001 (9) TMI 602

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....vedi, SDR, for the Respondent. [Order]. - The appellants are engaged in the manufacture of tea (bulk tea) classifiable under sub-heading No. 0902.00 and chargeable to duty @ Rs. 2 per kg. The issue in the present appeal relates to the availability of Cenvat credit of duty paid on the tea which they bring from outside for blending purposes and utilisation of the same for payment of duty on th....

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....flavoured tea" and to blend the same with their so called liqure tea and the resultant blended bulk tea will be cleared on payment of central excise duty by availing the benefit of Cenvat credit on duty paid on bulk tea (flavour tea) bought from outside. It may be mentioned that as per schedule to the Central Excise Tariff Act, 1985 these is no distinction between "flavour tea" or "liqure tea" and....

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....y them on payment of duty. So, the only process that will be done with the tea bought from outside is blending with the bulk tea manufactured by them at their Kalline Tea Factory. As per erstwhile Chapter Note 2 of Chapter 9 of Central Excise Tariff blending etc. of teas also amounted to manufacture. However, vide Finance Bill, 1999 Chapter Note 2 was omitted and therefore, blending of teas now....

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....ectly for the manufacture of bulk tea. This is used only for some blending purpose and for such activity the Cenvat credit facility cannot be extended as explained in the above paras. Here, I would like to reiterate that vide Finance Bill, 1999 Govt. had simplified the duty levy on tea and any activity such as blending, sorting re-packing etc. if carried out with the duty paid tea than there will ....