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2. We will briefly narrate the submissions of the writ petitioners which are dealt with elaborately in the written submissions filed by them. 'Gutkha', according to them, is a preparation which, apart from tobacco, contains betel nut, katechu, lime, flavours, permitted spices and saffron and tobacco is its essential character in relation to the dominant object of the user. The percentage of tobacco varies from 7% to 15%. They are aggrieved by the inclusion of the goods as 'Pan Masala' by whatever name called containing betel nuts, that is to say, nut of areca, catachu broken and perfumed and lime or menthol or sandal oils or cardamom or tobacco or any one or more of these ingredients at Sl. No.2 of Part-J of the First Schedule read with Section 3(2) of the TNGST Act.

(i) lime; and

(ii) kattha (catechu), but not tobacco, whether or not containing any other ingredients,such as cardamom, copra and menthol"; (2) in Chapter 24, after NOTE 5, the following NOTE shall be inserted, namely :- '6. In this Chapter, 'Pan Masala' containing tobacco", commonly known as 'Gutkha' or by any other name, means any preparation containing betel-nuts and tobacco and any one or more of the following ingredients, namely :-

(i) lime; and

(ii) kattha (catechu), Whether or not containing any other ingredients such as cardamom, copra and menthol."

20. We will first take up the first proposition. At the relevant point of time, 'Pan Masala' was described as a preparation containing betel nuts and any one or more of other ingredients such as lime, katha, katechu, cardamom, copra, menthol and tobacco. This is the definition of 'Pan Masala' as per the CET Act. This was the definition of 'Pan Masala' until 1995. The Heading 21.06 covered 'Pan Masala' containing lime, katha, katechu, cardamom, copra, menthol and tobacco or any or more of these ingredients. Chapter 24 dealt with tobacco and manufactured tobacco substitutes and the relevant sub-heading at that time was 2404.41 which deals with chewing tobacco, including preparations commonly known as khara masala, kimam, dokta, zarda, sukha and surti.

21. In the year 1995, by Act 22 of 1995, Note-3 was substituted. Thereafter, 'Pan Masala' came to be described as any preparation containing betel nuts and any one or more of the following ingredients, viz., lime, katha, katechu or tobacco, whether or not containing any other ingredients such as cardamom, copra and menthol. Therefore, the primary ingredient of 'Pan Masala' is betel nut, which could be mixed with other ingredients in combination or in isolation and this was the position prevailing as on 1.3.1988. In the year 1995, the definition underwent a change. Betel nuts continued to be one of the essential ingredients along with lime, katha or tobacco in combination or in isolation. It did not matter whether it also contained cardamom, copra and menthol, but one of the three ingredients, viz., lime, katha and tobacco had to be found in the preparation which was known as 'Pan Masala'. By Act 33 of 1996, the description with regard to chapter Heading 24.04 and the sub-Headings thereunder were re-numbered and the description of goods were re-classified. There was no change as far as Chapter 21 was concerned and Heading 21.06 continued to be only 'Pan Masala'. The change came with effect from 1.3.2001, where Note-3 read as follows :