TMI Blog2014 (9) TMI 769X X X X Extracts X X X X X X X X Extracts X X X X ..... e shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.” As per Rule 3(b), “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character.” If this rule is applied, then the material which gives the essential character is the Pan Leaf Powder. Pan Leaf is part of a plant and p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant submits that the product Calcutta Meetha Pan manufactured and marketed in boxes/pouches consist of dry dates shredded, cardamom, dry pan powder, spices, sauf, perfumes, menthol and contains added flavour and sweetners. The main ingredient is dry dates which accounts for 70% of the weight of the product. The balance ingredients like cardamom, spices, sauf and menthol accounts for about 20% and the green powder consisting of dry pan leaf about 2% of the weight. Therefore, it is covered by Tariff Entry under Chapter 20 as Preparation of vegetables, fruits and nuts and other parts of plants . Prior to March, 2005, there was only one heading under the said Chapter which read as Preparations of Vegetables, Fruit, Nuts or other parts of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concerned. The same decision was followed in the case of Shivraj Tobacco Co. Pvt. Ltd. - 2009 (241) E.L.T. 574 (Tri.-Del.), wherein the classification of a product Chaman Bahar powder and pono cream was considered which consisted of vegetables, fruits and other parts of plants. The Tribunal once again concluded that the product would merit classification under CETH 20.01. 2.2 The learned Counsel also relies on the decision of the Hon ble Apex Court in the case of Maharshi Ayurveda Corpn. Ltd. - 2006 (193) E.L.T. 10 (S.C.), wherein a classification dispute arose regarding a product called Herbonic tonic, which was a mixture of assorted vegetation and dry fruits and seeds which could be consumed as such. The competing entries were Hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd betel nuts have some common use (as masticatory) and physiological actions (stimulant and astringent), therefore, preparation under reference is similar to that of Pan Masala. Accordingly, he opined that the product Calcutta Meetha Pan would merit classification under CETH 2106. It is on the basis of this report, the lower authorities have held the classification under CETH 2106 and confirmed the duty demands. Therefore, the impugned demands are sustainable in law. 4. We have carefully considered the submissions made by both sides. 4.1 As regards the ingredients of the product, there is no dispute that the product consists of dry dates shredded, cardamom, dry pan powder, spices, sauf, perfume, etc., and the dry dates account for 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... product did not contain Pan Leaves and the Tribunal held that the mixture of dry dates, fennel, natural herbs, seeds of melon, cardamom, coriander, coconut, catechu, lime, saffron, sweetener, mishri, perfumes, essential oils and allied products and flavours and essence would merit classification under CETH 2001 and not under Chapter 2108. In the case of Shivraj Tobacco Co., a product consisting of fruits, vegetables and parts of plants was held to be classifiable under CETH 20.01. The Hon ble Apex Court in the case of Maharshi Ayurveda Corpn. considered the classification of a product which was a mixture of assorted vegetation and dry fruits and seeds and held that Chapter 20 was more specific and the product merited classification under th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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