2008 (10) TMI 496 - AT - Central Excise

Summary

Issues:
Classification of "Milk Shake Mixes" under heading No. 04.04 and Chapter 20 vs. heading No. 1901.19.
Classification of "Flavoured Syrups/Fruit Syrups" under heading No. 04.04 and Chapter 20 vs. sub-heading No. 2108.99.

Analysis:
The Applicants sought waiver of pre-deposit of duty and penalties related to the classification of "Milk Shake Mixes" and "Flavoured Syrups/Fruit Syrups." The dispute revolved around whether these products should be classified under specific headings as claimed by the Applicants or under different headings as determined by the Commissioner of Central Excise.

The Appellants argued that the classification of "Milk Shake Mixes" should follow precedents set by previous Tribunal decisions, citing cases such as Nestle India Ltd. v. CCE and Amrit Foods v. CCE. They contended that the products in question fell under specific headings based on their composition and the Tribunal's past rulings.

On the other hand, the Revenue representative supported the Commissioner's findings, asserting that "Milk Shake Mixes" constituted food preparations falling under a different chapter. They also argued against the classification of "Fruit Syrups" as claimed by the Applicants, emphasizing the specific categorization of such products under Chapter 21.

After reviewing the arguments from both sides and examining the records, the Tribunal found merit in the Applicant's reliance on past Tribunal decisions regarding the classification of "Milk Shake Mixes." The Tribunal highlighted a specific case where a similar classification had been upheld, indicating a favorable stance towards the Applicant's position.

Regarding the classification of "Fruit Syrups," the Tribunal noted the distinction between flavoured syrups and fruit syrups under the tariff. Despite the Revenue's objections, the Tribunal preliminarily determined that "Fruit Syrups" qualified as preparations of fruit falling under Chapter 20, aligning with the Applicant's assertions.

Ultimately, the Tribunal granted the waiver of pre-deposit for the balance amount of duty and penalties, considering the amount already deposited by the Applicant. The decision allowed the appeal and acknowledged the classification of both "Milk Shake Mixes" and "Fruit Syrups" as per the Applicants' claims until the appeal's final resolution.