2006 (7) TMI 32

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....stigations the officers concluded that the product manufactured by them was 'loose unbranded scented tobacco' which is rightly classified under Ch.2404.40 as chewing tobacco and preparation containing chewing tobacco. They were accordingly issued a Show Cause Notice demanding duty amounting to Rs. 1, 35,525/- and seeking imposition of penalty. The matter was adjudicated wherein the duty was confirmed and a penalty of Rs. 40,000/- was imposed under Rule. 173Q (1) by the Commissioner. 2. The learned Advocate for the appellants submits that the Show Cause Notice suffers an ambiguity of describing the correct status of the product i.e. whether it is chewing tobacco by itself or it is a preparation containing chewing tobacco. The Comm....

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....change, it demonstrates that raw tobacco is no longer an unprocessed product to be categorized as un-manufactured tobacco as .claimed by appellant. The learned advocate submits that the Department in the Show Cause Notice has acknowledged that quimam and perfume are the only two ingredients which are manually applied in meagre doses to raw tobacco patti. It is also admitted that quimam itself is tobacco extract and its application upgrades tobacco taste and smell. In other words, application of quimam helps in restoration of tobacco smell during its storage before its use in other product i.e. say gutka as popularly referred to. For the product to be taken as preparation it has either to be a mixture or a compound. Since ingredients of t....