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2017 (3) TMI 1282 - AT - Central ExciseClassification of goods - rate of duty - wheat puffs - the assessee wanted classification under CETA 2107 for the period up to 1994-95 and from 16.03.1995 onwards under 2108, whereas the department classified it under CETA 1904 10 - Soya nuts - The assessee sought their classification of Soya Nuts under CETH 2107 99 however, the department classified the same under CETH 2107 91 - The claim of the assessee is that 98.5% of the goods manufactured by them have been cleared to Integrated Child Development Scheme (ICDS), which is an organization of the State Governments of Haryana and Delhi with the objective to improve the nutrition level among young children as well as expecting and lactating mothers. Held that: - as regards soya nuts, the wording “put up in unit containers and ordinarily intended for sale”, in trade parlance refers to goods cleared for sale in convenient sizes of 100 gms., 200 gms. etc. for retail sale. The unit container cannot be used to refer to bulk packing of 10 Kgs./15 Kgs. which are mostly used in clearance for wholesale. It is also not in dispute that the goods have been cleared to ICDS for free supply and not for sale. Hence, the most appropriate classification for these goods is 2107.99. We note that the goods of 2107.99 were chargeable to ‘nil’ rate of duty as per tariff rate up to 28.02.1994 and with effect from 01.03.1994 the goods enjoyed ‘nil’ rate of duty under various N/N. 6/92-CE dated 01.03.1992 and 2/94 dated 01.03.1994. As regards wheat puffs, clearances made to ICDS in jumbo packs cannot be considered as clearance in unit containers. Consequently, the classification of the product Wheat Puff will be most appropriate under CETH 1904.90 and not under 1904 10. It is necessary for the issue to go back to the adjudicating authority for re-quantification of such demand of excise duty in respect of clearances of both the products made in unit containers to the agencies other than government (ICDS) - appeal allowed by way of remand.
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