2012 (10) TMI 903

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....r the Respondent. [Order per : M. Veeraiyan, Member (T)]. - Heard both sides on the stay petition. 2.1 The application is for waiver of pre-deposit of duty amount of Rs. 5,66,12,870/- along with interest and penalties. The relevant facts are that the applicant is a manufacturer of cigarettes. The principal raw material is unmanufactured leaf tobacco. The unmanufactured leaf tobacco underg....

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....te product and cannot be treated as manufactured out of cut tobacco and merely emerges as an inevitable waste during the course of manufacture of cigarettes and that such product cannot be treated as excisable product. The question of treating such non-excisable product either as exempted or chargeable to nil rate of duty does not arise as the Notification No. 52/2002 de bars exemption only in res....

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....cut tobacco and part of the cut tobacco has gone into refuse, while manufacturing cigarettes the duty on such quantity of cut tobacco has been rightly demanded. 5. We have carefully considered the submissions from both sides and perused the records. The Notification No. 52/2002-C.E. exempts all goods falling under Tariff Item 1206 90 20 and Chapter 24, manufactured in a factory and used with....