SHREE GANESH INTERNATIONAL Vs. CCE

JUDGEMENT

(1.) IN this appeal filed by M/s. Shree Ganesh International the issue involved is whether Pan Masala containing tobacco manufactured by them is classifiable under Heading 24.04 as confirmed by the Commissioner (Appeals) in the impugned Order or under Heading 21.06 of the Schedule to the Central Excise Tariff Act as claimed by the Appellants. impugned product is classifiable under Heading 21.06. Finally the learned Advocate submitted that even if they are held to be liable to pay duty under Heading 24.04 of the Tariff the price realized by them should be regarded as cum -duty price in terms of the decision of the Larger Bench of the Appellate Tribunal in the case of Sri Chakra Tyres vs. CCE, 32 RLT 1 (CEGAT - LB).

(2.) COUNTERING the arguments Shri P.M. Rao, learned D.R., submitted that tobacco products are classifiable under Chapter 24 of the Central Excise Tariff and once the Pan Masala containing tobacco, commonly known as gutaka, is covered by Additional Duty of Excise (Goods of special Importance), Act, 1957 it cannot be claimed by the Appellants that it will be classifiable still under Heading 21.06 ; that under Article 141 of the Constitution, the Law laid down by the Supreme Court of India is the law of land; that the Tribunal also in one decision has held that Pan Masala containing tobacco will be classifiable under Heading 24.04.

(3.) WE have considered the submissions of both the sides. No doubt during the relevant period Pan Masala was covered by Heading 21.06 of the Central Excise Tariff and as per Note 3 to the said Chapter Pan Masala may contain tobacco. However, when M/s. Kothari Products challenged the imposition of Sales Tax on