COMMISSIONER OF CENTRAL EXCISE, BANGALORE Vs. ITC LIMITED

JUDGEMENT

(1.) THIS is an appeal filed by Revenue.

(2.) M /s. ITC Ltd., the respondents are manufactures of Cigarettes assessable to duty under Chapter 24 of the Schedule to the Central Excise Tariff Act, 1985. They also manufacture Cut Tobacco in different blends, for use in Cigarettes manufactured by them, Cut tobacco was chargeable to duty @ 225% adv. However, if the same was for use in the manufacture of cigarettes then, it was to be charged duty @ Rs. 0.10 per kg. in terms of Notification No. 356/86 exempted as amended.

(3.) IT was noticed by the officers of the Directorate General of Anti -Evasion, Bangalore Regional Unit, that while accounting for the cut tobacco, as contained in the waste cigarettes. M/s. ITC were taking the weight of the cigarettes without slitting them, that is the weight of the paper was also included in that of the cigarette. It was thus found that the assessee were wrongly adjusting the weight of the paper contained in waste cigarettes, towards accountal of cut tobacco. Secondly, M/s. ITC had declared to the Deptt. the quantity of cut tobacco, used in the manufacture of 1000 cigarettes in Appendix I, for each brand of cigarette. As and when this input -output ratio changed, a fresh declaration was filed by them.