- (1.) Ganesh Tobacco Company, 127/217-A, Juhi Bara Devi, Kanpur, is a manufacturer of chewing tobacco. Chewing tobacco, after being manufactured, is packed in pudiyas and thereafter further packed and sealed in cartons and are kept in gunny bags. The petitioner, which is a manufacturer of tobacco, submitted a price list showing gross price of the tobacco as packed, (including the cost of the packing material), and claimed the benefit of concessional assessment at the rate of 15 per cent in terms of Notification No. 35/79, on the plea that the value of the branded chewing tobacco did not exceed Rs. 10/- per kilogram.
(2.) The Assistant Collector, Central Excise, allowed the petitioners plea for calculation of value of the chewing tobacco for the purposes of Notification No. 35/79 on the basis of gross value divided by the gross weight. Against the aforesaid order in appeal was filed by the petitioner before the Collector (Appeals), Central Excise, Kanpur. The appeal was allowed by the Collector (Appeals) by his order dated 19-3-1981, and the case was remanded to the Assistant Collector for de now consideration.
(3.) After remand, the Assistant Collector again passed an order with regard to the rate of excise duty payable by the petitioner, which was against it. The petitioner filed a fresh appeal before the Collector (Appeals). The appeal was partly allowed in so far as it pertained to computation of the price list holding that the logical method of calculating the value per kilogram of the branded chewing tobacco manufactured by the petitioner's concern was to divide the gross value of the unit of sale by the gross weight of the tobacco.;