LTDTRIBUNAL CIGARETTES LTD Vs. C.C.E. ALLAHABAD

JUDGEMENT

(1.) THE appellants manufacture Cigarettes falling under Sub -heading No. 2403.11 of the Schedule to the Central Excise Tariff Act, 1985. They received 'Cut Tobacco' at concessional rate of duty by following the procedure as prescribed under Chapter X vide Exemption Notfn. No. 356/86 -CE dt.24.6.86. The party vide their applications dt. 7.11.95 and 14.11.95 applied to the Commissioner of Central Excise, Allahabad for the destruction of 100 bags, weighing 3,400 Kgs cut tobacco received on 27.10.95 and 339 bags, weighing 11,525 Kgs of 'Esquire Filter Tobacco' received on 6.2.95/13.2.95 respectively on the ground that the same had deteriorated considerably and was not fit for manufacture of Cigarettes. The respective samples were drawn from the consignments of cut tobacco and sent to the chemical examiner for ascertaining the fact whether the condition of the cut tobacco at that time was fit for manufacture of Cigarettes. The chemical examiner, C.R.C.L New Delhi in his report dt. 25.4.96 stated as follows: -

(2.) THE appellants were issued a show cause notice dt. 11.7.96 by the Commissioner of Central Excise, Allahabad in which, they were called upon to show cause as to why their applications dt. 7.11.95 and 14.11.95 seeking for the destruction of 100 bags weighing 3,400 Kgs cut tobacco and 339 bags, weighing 11,526 Kgs. of Esquire Filter tobacco respectively should not be rejected in terms of Rule 49 of Central Excise Rules, 1944 and why Central Excise duty leviable thereon should not be demanded from them. After considering the reply of the party, the Commissioner of Central Excise, Allahabad passed an Order -in -Original dt. 13.9.99 in which he rejected the applications of the party for destruction of 14,925 Kgs. of cut tobacco. He further held that the appellants were required to pay Central Excise duty of Rs. 10,96,383/ - leviable on the a forestated quantity of cut tobacco procured under Chapter X procedure in terms of Rule 196 of the Central Excise Rules, 1944. He has stated that since the party already paid a sum of Rs. 7,46,300.00, therefore, they were ordered to pay the balance amount of Rs. 3,50,083.00.

(3.) I have considered the submissions made before me. The Department is not disputing that the facts of the present case are fully covered by the ratio of the above cited decision. Therefore, I follow the same and set aside the order passed by the Commissioner. I remand the matter back to the Commissioner for considering the matter afresh by following the procedure as directed in Para 6 of the CEGAT order extracted above. The Commissioner shall decide this matter afresh within 8 weeks from the date of receipt of this order.