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2019 (10) TMI 762 - AT - Central ExciseClassification of goods - Minute Maid Nimbu Fresh - Nimbooz Masala Soda - Nimbooz - whether would fall under Tariff Item No. 2202 10 20 of the Central Excise Tariff Schedule or under Tariff Item No. 2202 90 20? - HELD THAT:- For a product to be classified under 2202 10 20 it must be in the nature of waters, including mineral waters and aerated waters, containing flavouring elements as lime/lemon. It, therefore, follows that products which are not essentially waters with flavouring elements as lime/lemon, would not fall for classification under 2202 10 20. Thus, unless the products MMNF, Nimbu and Nimbooz satisfy the description of single dash 2202 10 as “waters including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured”, they cannot straightway be classified under the three dash “---” 22020 10 20 as lemonade. It is not even the charge in the show cause notice or in the impugned order that any of the products in question satisfy the above description of 2202 10 as “waters including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured.” These products, therefore, cannot fall under 2202 10 20 as lemonade. Tariff Item No. 2202 10 20 would cover only those products which are essentially waters with added sugar and flavoured. The Supreme Court in its decision in Parle Agro (P) Ltd. [2017 (5) TMI 592 - SUPREME COURT] examined at length the provisions of the Regulations framed under The Food Safety and Standards Act and more particularly to the provisions of Regulation 2.3.10 that requires fruit juice content in lime / lemon ready to serve beverage as not less than 5% and in all other beverages / drinks as not less than 10%. It was noticed that in Appy Fizz, the contents of apple is more than 10%. In the case of lime / lemon the fruit juice content the requirement is that it has to be not less than 5 %. The products bought and sold as “fruit drink with lemon juice” having a juice content of 5 per cent or more are described as Ready to Serve Fruit Drink and not as Lemonades or Lemon/Lime Flavoured Drinks. On the other hand, the products which are sold as ‘Sweetened Carbonated Beverage’ have no fruit juice content in them and they are bought and sold either as ‘Lemonades or Lemon Flavoured Drinks’ with a clear stipulation that they contain no fruit juice or fruit pulp - It can, therefore, safely be assumed that the first group of products which are Lemon Juice Based Drinks having a juice content of 5 per cent or more are not Lemonades in the commercial parlance and, therefore, will not be covered under Tariff Item No. 2202 10 20 and will be covered under Tariff Item No. 2202 90 20. Regulation 2.3.10 deals with ‘Non-Carbonated Fruit Beverages’ and Regulation 2.3.30 deals with ‘Carbonated Fruit Beverages’. The fruit juice content (m/m) for both the Non-Carbonated and Carbonated Fruit Beverages has been indicated. In the case of ‘Non-Carbonated Fruit Beverages’, the Total Soluble Solid (m/m) should not be less than 10% and the fruit juice content for Lime/Lemon ready to serve beverage has been mentioned to be not less than 5.0 per cent. In the case of Carbonated Fruit Beverage, the Total Soluble Solid (m/m) should also not be less than 10% and the Fruit content of Lime or Lemon juice should not be less than 5%. It has also been stated that the product shall have the colour, taste and flavour characteristic of the product and shall be free from extraneous matter. Thus, the fruit juice content of lime or lemon juice in MMNF, Nimbu Masala Soda or Nimbooz has been indicated to be not less than 5% and the Total Soluble solids is also not less than 10%. All the three products namely MMNF, Nimbu Masala Soda and Nimbooz, satisfy the requirements of Regulation 2.3.10 or Regulation 2.3.30. These products, therefore, would classify under Tariff Item no. 2202 90 20 as fruit juice based drinks - The irresistible conclusion, therefore, that follows from both the common parlance test and the supporting legislation test is, therefore, that the three products MMNF, Nimbu Masala Soda and Nimbooz would classify under Tariff Item No. 2202 90 20 as fruit juice based drinks.
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