TaxTMI 
TaxTMI 
2007 (3) TMI 24
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.... and were required to discharge duty at higher rates as applicable to filter cigarettes. Consequent to the finding, a duty demand of over Rs. 2.3 crores along with interest has been made and a penalty of equal amount imposed under the order. The present appeal challenges the duty demand, imposition of penalty etc. made under the order. 3. The manufacturing process of 'tipped' cigarette as detailed in the show cause notice may be noted :- "An observation of manufacturing process of the said Tipper Brand Gold Tipped cigarettes reveals that the party made solid dense end rod with tobacco and joined the same solid dense end rod with piece of cigarette rod and solid dense end rod is over wrapped with gold tipped C.T. paper. The dense end rod p....
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....garette ordered. The finding of the Com missioner may be read "13. Essential characteristics of a filter, from whatever has been submitted and put forth by the party are :- (i) It should check the suspended particles from entering the mouth. (ii) It should not let the tobacco particles enter the mouth. (iii) It should absorb smoke of tobacco resulting in absorption of nicotine to some extend. (iv) It should have higher filtration efficiency. (v) It should purify tobacco smoke. All above essential characteristics of a filter are possessed by the tipper end. Densified tobacco, with tobacco densely filled inside, facilitates absorption of more smoke and nicotine contained therein and this higher nicotine retention efficiency is acquired....
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....motive to evade Central Excise duty and therefore for this deliberate action on the part of the party, a penalty under Section 11AC read with Rule 25 is rightly attracted and has correctly been imposed." 7. The contention of the learned Senior Counsel for the appellant is that the finding is without any evidence in its support and is also contrary to the entire materials available on record. It is being pointed out that there is no material, even remotely suggesting that tobacco itself can be used as a (tobacco) filter by making it into a dense rod as noted in the show cause notice. It is being pointed out 1.5 specifications stipulate that the role of cigarette filter is to retain the components of the smoke and filtration efficiency is me....
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.....S; was developing starch based cigarette filters. It is also the learned SDR's contention that since the tariff mentioned no specific filtering material or any particular kind of filters, cigarettes with filters made of all materials would require to be classified as filter cigarettes. He would also point out that the Commissioner has correctly held that when smoke passes through the dense layer of tobacco at the smoker's end, it gets filtered. it is also the finding that loose flakes of tobacco are stopped from entering the mouth of smokers. According to the learned SDR, the functions of a cigarette filter are to reduce the tar in tobacco smoke as well as to stop tobacco flakes from entering the mouth of smokers. He would point out that s....
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....s:) Total length of cigarette - 60 mm having light brown marking at 15 mm length. While portion (45 mm) is filled with processed tobacco and remaining 15 mm (brownish portion) is filled with exhausted tobacco treat with sugary material. However, as per ISO 10666-1983 cigarette filter shall be made from suitable non-toxic material which may be bonded with non-toxic binder. The filter rods may be made of mono dual or multiple materials with or without special/selective absorbing additives. Generally, filters are made of viscose staple, acetate and/or crimped paper and should pass specification regarding (1) manufacture of filter (a) formation (b)cut off (2) dia (3) hardness and resilience (4) pressure drop and (5) filtration efficiency tests....