SOM FLAVOURS PVT. LTD. Vs. CCE

JUDGEMENT

(1.) IN this appeal filed by M/s. Som Flavours Pvt. Ltd. the issue involved is whether Gutka (Pan Masala) containing tobacco is classifiable under Heading 24.04 of the Schedule to the Central Excise Tariff Act as claimed by the Appellants or under Heading 21.06 of the Tariff as confirmed by the Commissioner (Appeals).

(2.) WE hard Shri R. Pal Singh, learned Consultant for the appellants and Shri H.C. Verma, learned D.R., for the Revenue. The issue regarding classification of Pan Masala containing tobacco has been settled by this Tribunal in the case of Gahoi Foods Pvt. Ltd. v. CCE, Indore relying upon the decision of the Supreme Court in the case of Kothari Products Ltd. v. Government of Andhra Pradesh 2000 (119) S.T.C. 353. The Appellate Tribunal in Gohoi Foods Pvt. Ltd. has held as under: Revenue's entire case is that before presentation of Budget 2001 pan masala containing tobacco was classifiable under Heading 2106 which is apparent also from Note 3 to Chapter 21. It was only after the presentation of Budget 2001 that pan masala containing tobacco was covered by Heading 24.04. The appellants, however, are relying upon the judgment of the Supreme Court in the case of Kothari Products Ltd. wherein the Supreme Court has clearly held that gutkha is a tobacco i.e. covered by an entry in the first Schedule to the Additional Duties of Excise Act and the branded gutkha that the appellant manufacturer is liable to tax thereunder. Once the Supreme Court, which is the highest Court of the Land, holds that gutkha is a tobacco product covered by Additional Duties of Excise (Goods of Special Importance) Act, 1957, no doubt reminds that it is not a product classifiable under Heading 21.06 and it should fall under Chapter 24 of the Central Excise Tariff which deals with tobacco and manufactured tobacco substitutes. Under Article 141 of the Constitution of India, the law declared by the Supreme Court is the law of the land. In view of this, the contention of the appellants is correct that after the Judgment of the Supreme Court in Kothari Products Ltd. case (supra), pan masala containing tobacco commonly known as gutkha is classifiable under Chapter 24 of the Central Excise Tariff and not under Chapter 21 of the Central Excise Tariff. Following the ratio of the said decision we set aside the impugned Order and allow the appeal.