Arijit Pasayat, J. - (1.) These appeals are directed against the common judgment of the Customs, Excise and Gold (Control) Appellate Tribunal, Eastern Branch, Calcutta (in short the CEGAT) which is being assailed by the Central Excise authorities. By the impugned judgment, CEGAT held that tobacco powder obtained by crushing of tobacco leaves, stems, stalks and butts are classifiable under tariff sub-heading 2401.00 as unmanufactured tobacco and not classifiable as manufactured tobacco under sub-heading 2404.90 of the Schedule to the Central Excise Tariff Act, 1985 (in short the "Tariff Act).
(2.) Background facts in a nutshell are as follows : The respondents are having licence under the Central Excises and Salt Act, 1944 (in short the Act). They are engaged in manufacture of Gul. While scrutinizing the records, the Assistant Collector of Central Excise, Barrackpore Division, Calcutta noticed that during the period from 1-2-90 to 31-7-90 manufactured tobacco powder/dust fall under sub-heading 2404.90 of the Schedule of the "Tariff Act. He felt that without any justifiable reason, duty involving Rs. 8,871.65 (both basic and special) was not paid, statutory records were not maintained, thereby contravening provisions of Rules 174, 9(1, 52, 52-A, 54 and 226 of the Central Excise Rules, 1944 (in short the Rules). Show cause notice was issued on 30-1-1991 proposing to levy the demand from 1-8-90 to 31-12-1990. Similarly show cause notices were also issued for the demands for the period from 1-1-1991 to 31-5-1991 and from 1-6-1991 to 24-7-1991.
(3.) The Superintendent of Central Excise of the concerned Range issued show cause-cum-demand notice. After hearing the respondents the Assistant Collector held that tobacco powder/dust emerging by crushing of un-manufactured tobacco leaves is a distinct product having distinct name and character and fall under sub-heading 2404.90. The demands were confirmed.;