- (1.) The Department/Revenue is in appeal before us challenging the order of the Customs, Excise and Service Tax Appellate Tribunal (hereinafter referred to as 'the Tribunal') [ : 2007 (208) E.L.T. 262 (Tribunal)] whereby the Tribunal has granted the Respondent/assessee the benefit of Exemption Notification No. , dated 1 -3 -2001 and on that basis held that the Assessee is not liable to pay any excise duty on its product known as "Crane Gutkha" which is containing chewing Tobacco. The brief facts of the matter are that the Assessee is engaged in the manufacture of Pan Masala/Gutkha containing Tobacco falling under Chapter sub -heading 2404.49. This product is manufactured and sold under the brand name "Crane Gutkha". The Assessee had filed revised declaration Under Rule 173B of the Excise Rules claiming exemption under Notification No. , dated 1 -3 -2001 w.e.f. 1 -4 -2001. It was stated that since the Assessee is not using the brand name of any third party but being a small scale industrial unit, the aforesaid brand name is its own brand name, for the purposes of the said Notification No. it should be treated as "unbranded" product. Though, this contention was not accepted by the Commissioner in his Order -in -Original who raised the demand for payment of duty @ of 60% which is a normal duty payable on the said product, the Tribunal by the impugned order has been persuaded by the aforesaid contention and therefore, held that the Assessee is entitled to the benefit of the aforesaid notification to the extent of 32%.
(2.) In order to appreciate the respective cases of the parties, it would be necessary to traverse through the notification in question. This Notification No. pertains to SSI exemption scheme which was made effective from 1 -4 -2001 for units not availing CENVAT credit. The notification exempt clearances, specified in column (ii) of the table annexed to the said notification, for whom consumption of excisable goods of the description specified in the said annexure. The annexure is in the following terms: "All goods specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), other than the following namely: (i) All goods which are chargeable to nil rate of duty or are exempt from the whole of the duty of excise leviable thereon; (ii) All goods falling under heading No. 09.02; (iii) All goods falling under heading No. 21.06 and sub -heading Nos. 2101.10 and 2101.20; (iv) All goods falling under Chapter 24 of the First Schedule (other than unbranded chewing tobacco and preparations containing chewing tobacco, falling under heading No. 24.04."
(3.) A reading of the aforesaid annexure clearly demonstrates that the goods which are specified in the First and Second Schedules to the Central Excise Tariff Act, 1985 are exempted in respect of SSI units. However, four categories of goods are excluded from such exemption. We are concerned with the exclusion contained in para (iv) as per which if the goods fall under Chapter 24 of the First Schedule, such goods would not be entitled to any exemption. It is not in dispute that the goods manufactured by the Assessee fall under Chapter 24. However, this very para, while excluding the goods falling under Chapter 24 of the First Schedule states that if the goods are unbranded chewing Tobacco or unbranded preparations containing chewing Tobacco falling under Chapter 24.04, they would be entitled to exemption.;