Sprinkling Jaggery Water on Raw Tobacco Is Not Manufacture; Classifiable Under CETH 2401: Madras HC

Renganathan & Sons Vs Assistant Commissioner of GST & Central Excise (Madras High Court) The Madras High Court allowed the writ petition challenging an order that reclassified the petitioner’s tobacco product under HSN 2403 99 10 and demanded higher compensation cess, interest, and penalty. The petitioner, a registered partnership firm engaged in the tobacco business, had classified its product under HSN 2403 99 90, contending that no manufacturing process had altered the character of the raw tobacco and had accordingly paid compensation cess at 96%. The department disagreed and...