Customs, Excise and Gold Tribunal - DelhiCollector Of C. Ex. vs Tata Tea Limited on 5 February, 1998Equivalent citations: 1998(101)ELT37(TRI-DEL)ORDER
 

 S.S. Kang, Member (J)1. These appeals were filed by the Revenue against the common Order-in-Appeal dated 18-12-1989 passed by the Collector of Central Excise (Appeals), Madras. The Collector of Central Excise vide impugned order held mat tea cess is not leviable on the tea waste.2. The Revenue filed the appeals on the ground that cess is leviable on tea waste cleared for manufacture of instant tea meant for export since it is not specifically exempted under the Central Excise Rules, 1944. Cess on tea is leviable under theTea Act, 1953and the definition of tea includes tea waste also. The Revenue further contended that since no Notification under Rule 191B of the Central Excise Rules, 1944 permitting clearance of tea waste without payment of cess has been issued, therefore, the cess would be payable on tea waste even if such tea waste is cleared without payment of Central Excise Duty. Shri Satnam Singh, SDR, appearing for the Revenue reiterated the grounds of appeal.3. Shri Joseph Kodianthara, learned Counsel, appearing on behalf of the respondents, submits that theTea Act, 1953provides cess only on the tea and not on the tea waste. He submits that the Commissioner of Central Excise, Coimbatore, dropped the proceedings initiated against the respondents in respect of tea cess on tea waste. He relied upon the Order-in-Original dated 19-3-1996 passed by the Commissioner of Central Excise. He submits that in the order, the Commissioner of Central Excise, relied upon the instructions issued by the Ministry of Commerce in which it is specifically said that if waste is not included in the definition of the Tea as defined in theTea Act, cess is not leviable on the Tea Waste. He also relied upon the Board's instructions dated 23rd May, 1996 in which it was stated that no cess is to be collected for the Tea Waste as defined underSection 25of the Tea Act, 1953. He, therefore, prays that the appeals be dismissed.4. Heard both sides. In these appeals the issue is, whether the tea cess leviable under theTea Act, 1953can be levied on the Tea Waste. The respondents are engaged in the manufacture of black tea falling under sub-heading 09.02 of theCentral Excise Tariff Act, 1985and during the process of manufacture of black tea certain quantity of waste occurs. Such tea waste is classifiable under sub-heading No. 0902.29 of the Central Excise Tariff. If such waste is denatured, it is exempted from payment of Central Excise duty under Notification No. 248/86, dated 11-4-1986 and if the tea waste is sent for manufacture of instant tea falling under sub-heading No. 2101.20 of the Central Excise Tariff, the central excise duty is payable on such tea waste.5. In the present proceedings, the excisability on the tea waste is not under dispute. The dispute is only in respect of cess under theTea Act, 1953, on the tea waste. The Commissioner after examining the provisions of theTea Actheld that Tea Waste is not included under the definition of Tea as given in theTea Act. The Commissioner of Central Excise also dropped the proceedings vide adjudication order dated 19-3-1986 relying upon the instructions of the Ministry of Commerce where it was stated that since Tea Waste is not included in the definition of the Tea as defined in theTea Act. The Central Board of Excise & Customs also issued similar instructions. The instructions issued vide letter F. No. 262/3/95-CX. 8 (Circular No. 214/48/96-CX), dated the 23rd May, 1996 is reproduced below :To
 

As Per Distribution List No. I.
 

Copy of Board's letter F. No. 262/3/95-CX. 8 (Circular No. 214/48/96-CX), dated the 23rd May, 1996.
 

Sub: As above....Representations have been received from the Trade that Central Excise Field formations have been collecting cess on tea waste. Cess is leviable on all tea produced in the country under the provisions ofTea Act, 1953and no cess is leviable on tea waste or sweepings collected in tea factories.2. The matter has been examined by the Board and I am directed to say that no cess is to be collected on 'tea waste' as defined underSection 25of the Tea Act, 1953.3. Trade and Field formations may be suitably informed.4. Please acknowledge receipt of this Circular.Yours faithfully, 
Sd/-UNDER SECRETARY TO THE GOVERNMENT OF INDIA.The instructions issued by the Board vide abovementioned letter show that no cess is leviable on the Tea Waste as defined underSection 25of the Tea Act, 1953.6. In view of the above discussion, we do not find any infirmity in the impugned orders and the appeals filed by the Revenue are dismissed.