DINESH POUCHES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The appellants herein are engaged in the manufacture of Pan Masala, falling under sub -headings 21 and 24 as Pan Masala both containing Tobacco as well as not containing Tobacco. They had cleared the Pan Masala containing Tobacco under sub -heading 2404.49 for the period 1 -3 -2001,to 31 -3 -2001 and product was to be assessed as per the value computed under Section 4 of the Central Excise Act whereas the department was of the view that they have to pay the duty on the clearance on MRP as provided in the Notification 5/2001 -C.E., dated 1 -3 -2001 and issued under Section 4A of the Rules with a corrigendum issued on 2 -3 -2001 published in the gazette. The demand was confirmed on the above basis. Hence this appeal.

(2.) We find that there is no merit in the plea of the Appellants that the introduction of sub -heading 2404.49 covering Pan Masala containing Tobacco was not valid as such a change can be brought about by the amendment to the Notification and not by issuing a mere corrigendum, as this corrigendum, as rightly pointed out by learned Senior Departmental Representative, had the effect of amendment to the Notification and it was duly published in the gazette and therefore has statutory force. Therefore, the duty demand covering the period 2 -3 -2001 which is the date on which the Notification was amended, up to 31 -3 -2001 is sustained, Duty demand for 1 -3 -2001 alone is set aside as unsustainable. Duty to be recomputed on the above basis. Appeal is disposed of in the above terms with consequential relief due to the appellants in accordance with law.