TMI Blog1988 (7) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... chedule is hereinafter referred to as the Central Excise Tariff ) and of Fruit Squashes and cordial of all fruits like orange, lemon, mango, pineapple, litchies etc., in 200,400 and 700 Mis bottles under sub-heading No. 2001.10. The Assistant Collector of Central Excise, by his order dated 2-11-1986, classified canned fruits in syrups under sub-heading No.-2001.10 and Fruit squashes and cordials under sub-heading No. 2107.91. This order was upheld by the Collector (Appeals) by his impugned order. Hence the present appeal. 3. The basis of the classification ordered by the Assistant Collector is that only provisionally preserved fruits are classifiable under Chapter 08. Canned fruits can by no means be called provisionally preserved, since they can last for a long time. Hence, he ruled that canned fruits fell under sub-heading No. 2001.10. He relied on statutory Note 1 to Chapter 20 of the Central Excise Tariff and the Explanatory Notes to Chapter 8 o. the Harmonized Coding System of Nomenclature (HSN) on which the present Central Excise Tariff is based, in coming to this decision. Similarly, relying on statutory Note 5(j) to Chapter 21 of the Central Excise Tariff, the Assistan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter were not and a degree of processing was involved in the conversion of the latter into the former. 7. Referring to the Explanatory Notes in Chapter 8 of the H.S.N. : This Chapter covers fruit, nuts and peel of citrus fruit or melons (including watermelons), generally intended for human consumption (whether as presented or after processing). They may be fresh (including chilled), frozen (whether or not previously cooked by steaming or boiling in water or containing added sweetening matter) or dried (including dehydrated, evaporated or freeze-dried); provided they are unsuitable for immediate consumption in that state, they may be provisionally preserved (e.g., by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions). the counsel submitted that the proviso therein was not applicable to the instant case since the canned fruits were suitable for immediate consumption. The Assistant Collector was wrong in saying that only provisionally preserved fruits were classifiable under Chapter 8. 8. Replying to the above submissions, Shri LC. Chakraborty, DR, drew our attention to Chapter Note 1 to Chapter 20 reading thus :- 1. This Chapter covers on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat Chapter 8 covers fruits generally intended for human consumption whether as presented or after processing. That is to say, fruits and processed fruits, as in the instant case, are covered by the chapter. The proviso reading:- Provided they are unsuitable for immediate consumption in that state, they may be provisionally preserved (e.g. by sulpher dioxide gas, in brine, in sulphur water or in any other preservative solutions). It can be read to only signify that fruits provisionally preserved (for e.g. by sulpher dioxide gas), but unsuitable in that state for immediate consumption would not be out of the purview of Chapter 8. It cannot, and does not, mean, as the lower authorities have held, that only provisionally preserved fruits are classifiable under Chapter 8. The Explanatory, Notes go on to say that fruits of Chapter 8 remain classified therein even if put up in airtight packings (cans, in the instant case): The further note that In most cases, however, products put up in these packings have been prepared or preserved otherwise than as provided in the headings of this chapter and are therefore excluded (Chapter 20) cannot have any relevance in the context of the Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e competing sub-headings are 2001.10 and 2107.91 (reproduced earlier). From a bare reading of Heading No; 20.01, it will be clear that preparations of fruit juices; whether or not containing added sugar or other sweetening matter are covered by it. But, are squashes and cordials preparations of fruit juices? And, why has the Assistant-Collector classified them under sub-heading 2107.91 ? Prima facie, if squashes and cordials are covered by the Heading 20.01 ( fruit juices ), they would not be covered by the residuary Heading No. 21.07 ( Edible preparations, not elsewhere specified or included ). Unfortunately, the composition of the subject quashes and cordials is not on record though there is no dispute that these are squashes and cordials. The Assistant Collector has relied on Statutory Note 5(j) to Chapter 21 in support of his conclusion. (This note has been reproduced earlier). The note has the effect of including within Heading No. 21.07, preparations for lemonades or other beverages, consisting, for example, of flavoured or coloured syrups, syrup flavoured with an added concentrated extract, syrup flavoured with fruit juices and concentrated fruit juices with added ingredient ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uit products as meaning inter alia squashes and cordials and ready-to-serve beverage. There is little doubt, therefore, the squashes and cordials are not ready-to-serve beverages but fruit products or preparations which (there is no dispute on this in the present instance) can yield ready-to-serve beverage on dilution with water. The following definitions are found in the Prevention of Food Adulteration Rules, 1955:- Fruit Juice means the unfermented and unconcentrated liquid expressed from sound, ripe, fresh fruit, and with or without :- (a) sugar, dextrose, invert sugar, or liquid glucose, either singly or in combination. (b) water, peel-oil, fruit essences and flavour, common salt, ascorbic acid, citric acid, (tartatic acid and malic acid) and permitted colours and preservatives. The acidity of the finished product calculated as citric acid shall not be less than 4 per cent in the case of pure lemon juice or pulp and not less than 5 per cent in the case of pure lime juice but shall not exceed 3.5 per cent in the case of other juices. [The total soluble solids for sweetened fruit juice (except tomato juice) shall not be less than 10 per cent]. [It may also contain e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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