JUDGMENT
Archana Wadhwa, Member (J)
1. After hearing both sides, we find that the short issue involved in the present appeal is as to whether Tea including Tea Bags and Tea Waste put up in unit containers bearing brand name, which was made dutiable from 2.6.98 by the Union Government’s Budget, 1998-99, was leviable to duty of excise during the period from 2.6.98 to 23.6.98, when a Notification No. 16/98-CE dated 24.6.98 withdrawing the levy was issued.
2. Duty of Rs. 1,96,116.00 (Rupees one lakh ninety-six thousand one hundred and sixteen) has been confirmed against the appellants for the said period ill respect of the bulk tea cleared by the appellants in tea-chests/gunny bags, exceeding 20 kgs. in weight bearing the namemark of the company.
3. Shri Raghubir Singh, learned Advocate for the appellants submits that now the matter has been decided by the Hon’ble High Court of Gauhati vide its Order dated 5.9,2002, wherein an identical issue of excisability of bulk tea removed/sold in 20 kgs. of chests or gunny bags during the period from 2,6.98 to 23.6.98, was the subject-matter. The Hon’ble High Court in the said Order has held as under:
“It has been found that there was no tax on tea removed in tea chests or gunny bags and as such tea does not come within the sweep ‘tea put up in unit container with brand name’.
On the basis of the materials and discussions held above, I hold as follows:
(1) There was no tax in the parent Act on tea removed in the manner above. It was Nil in bulk tea removed in tea chests and gunny bags it does not come under the definition of ‘tea put up in unit container with a brand name’. As such, the letter dated 13.10.98 (Annexure-G) issued by the Ministry of Commerce is erroneous and the same shall stand quashed. It is not the correct interpretation of the statute. In view of it, all the show cause notices issued by the authority shall stand quashed as bulk tea removed in unit container like tea chests, gunny bags etc. were not liable for taxation as it will come in the category of ‘others’. The exemption notification issued on 24.6.1998 is really not an exemption notification and there was no necessity to issue such a notification as there was no tax on bulk tea removed in container like tea chest and gunny bags etc. It is also to be noted that the exemption notification which has been issued is absolutely irrelevant in view of the decision arrived at in this case that there was no tax on tea removed/sold in tea chest and gunny bags etc. by the garden. As there was no tax on such things, the question of granting exemption does not arise and it is in view of that matter, the exemption notification also would not be applicable in connection with tea removed in tea chest and gunny bags as such removal as held earlier does not come within the subject matter of tax is ‘tea put in unit container with a brand name’. This can be ignored.”
4. We have carefully considered the above Order or the Hon’ble High Court which covers the issue directly. As such, following the ratio of the same, we set aside the impugned Order and allow the appeal with consequential reliefs to the appellants.