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2015 (4) TMI 732 - CESTAT NEW DELHI

2015 (4) TMI 732 - CESTAT NEW DELHI - 2015 (328) E.L.T. 645 (Tri. - Del.) - Classification of goods - classification of the tablets called actifresh, pletico mint, plethico byte and travisil - Held that:- Ice mint tablets with the base of sugar and containing menthol are not ayurvedic medicines falling under chapter 30, but are sugar confectionery falling under heading 1704 of the central excise tariff. According to the respondent this judgment had been set aside by the apex court vide judgment .....

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mint tablets as sugar confectionery under heading 1704 while neither side had adduced arguments for classification of the ice tablets as sugar confectionery under heading 1704.

Heading 1704 of the central excise tariff is based on the HSN heading 17.04. Therefore, the scope of heading 17.04 of the central excise tariff would be same as the scope of the HSN heading 17.04. Heading 17.04 of the central excise tariff and heading 17.04 of the HSN cover sugar confectionery (including white .....

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on to the sugar/glucose base contains 0.15 mg of pudina ark would be classifiable as sugar confectionery unde heading 1704 as the pudina ark is only a mouth freshener or flavoring agent.

As regards, plethico byte , each tablet of which grm, in addition to sucrose and liquid glucose base contains 2.5 mg of mulethi, the same would be classifiable as ayurvedic medicine under heading 3004 as mulethi acts a therapeutic agent for sore throat.

As regards, travisil , each tablet co .....

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ontaining mulethi and travisile lozenges , which are marketed by the appellant as medicines for sore throat/ cough would be correctly classifiable as ayurvedic medicine under heading 3004 of the Central Excise Tariff. Accordingly, we uphold the impugned order with regard to classifiacation of these products. However, as discussed above, the other two products actifresh and plethico mint which are basically mouth fresheners are correctly classifiable as sugar confectionery under heading 1704 of t .....

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Decided partly in favour of Revenue. - Excise Appeal No. E/766/2010 -Ex[DB] - Final Order No. 50637 /2015-Ex(Br) - Dated:- 16-3-2015 - Hon'ble Mr. Rakesh Kumar, Member (Technical) And Hon'ble Mr. S.K. Mohanty, Member (Judicial),JJ. For the Appellants : Mr. R.K. Grover, DR For the Respondent : None ORDER Per Rakesh Kumar (for the Bench): The facts leading to filing of this appeal by the Revenue are, in brief, as under:- 1.1 The respondent manufacture the products named Actifresh , Plethi .....

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co byte , each tablet contains 0.10% of the active ingredient mulethi and the remaining contents are sucrose and liquid glucose and the very small quantity of citric acid orange flavor and sunset yellow colour. In case of product travisil , each unit of 3 grm contains 0.23 mg of ayurvedic extracts and the remaining contents are mainly sugar (sucrose & glucose) with very small quantity of chocolate brown colour, menthol lemon flavor and ginger oil. In case of plethico mint , each unit contain .....

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fectionery under heading 1704.90 of the tariff, the products, in question, would also be classifiable as sugar confectionery under heading 1704.90 of the tariff. It is on this basis that the Show Cause Notice were issued for classification of these products as sugar confectionery under sub-heading 17049090 of the tariff and demand of differential duty along with interest and also for imposition of penalty under Rule 25 of the Central Excise Rule 2002. The two Show Cause Notice dated 06.02.2008 a .....

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sioner was reviewed by the Commissioner and accordingly he was directed to file appeal before Commissioner (Appeals) under section 35E(2) read with section 35E(4) of the Central Excise Act 1944. These reviewed appeals were decided by the Commissioner (Appeals) vide order in appeal dated 19.11.2009 by which the Revenue s appeal were dismissed. Against this order of the Commissioner (Appeals), this appeal has been filed. In respect of the Revenue s appeal, the respondent has file a memorandum of c .....

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l Excise (supra) he also cited the judgment of the tribunal in the case of Sampre Nutritions Ltd. vs CCE Hyderabad reported in 2004 (169) ELT 42 (Tri. Bang) wherein the Tribunal held that Vicks vitamin-C / mango tablets are not P&P medicines classifiable under chapter 30 of the Central Excise tariff but are sugar confectionery classifiable under heading 1704 of the tariff, and also the tribunal s judgment in the case of Kushal Confectionery and Pharma Ltd. vs CCE Chandigarh reported in 2000 .....

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for the products, in question, and that these products are neither prescribed by any Vaidya/ Doctor nor a products indicate any doses for any limited time and hence the same do not merit classification as ayurvedic medicine. He also pleaded that though the apex court in its judgment in the case of Warner Hindustan Ltd. vs Collector of Central Excise reported in 1999 (113) ELT-24(SC) has set aside the tribunal s order reported in 1989 (42) ELT 33, the apex court has not overruled the Tribunal s .....

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impugned order is not correct. 5. We have considered the submissions of the Ld. DR and have perused the records. The dispute in this case is about classification of the tablets called actifresh , pletico mint , plethico byte and travisil . The composition of these products is discussed in the SCN. The actifresh consists mainly of Sucrose and liquid glucose and the active ingredients in it is pudina ark and nilgiri oil, Nilgiri Oil is nothing but eucalyptus oil. One tablet of actifresh contains .....

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mg of chocolate brown colour, 3 mg of menthol, 0.0012 mg of lemon flavor, 0.0006 mg of flavored ginger oil and 0.23 mg of ayurvedic extracts consisting of various herbs like kali mirch, mulethi, haldi, saunth, sat-pudina, katha, baharda, chirmitri patra, amla etc. This Travisil Lozenges are marketed as cure for sore throat. Each tablet of plethico mint besides the sugar/ glucose based contains 0.15 mg of pudina ark. According to the Department, all these products are sugar confectionery falling .....

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y falling under heading 1704 of the central excise tariff. According to the respondent this judgment had been set aside by the apex court vide judgment dated 03.08.1999 reported in 1999 (113) ELT 24 SC. However, on going through the apex court judgment, we find that the Tribunal s judgment in the case of Warner Hindustan Ltd. vs CCE (supra) classifying ice mint tablets as sugar confectionery under heading 1704 had not been set aside on merit but had been set aside on the ground that on the Depar .....

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l excise tariff and heading 17.04 of the HSN cover sugar confectionery (including white chocolate, not containing cocoa) . In terms of explanatory notes to HSN heading 1704, this heading includes: preparations put up as throat pastilles or cough drops consisting essentially of sugar (whether or not with other food stuffs such as gelatin, starch or flour) and flavoring agents including substances having medicinal properties such as Benzyl alcohol, Menthol, eucalyptol oil and tolu balsom. However, .....

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and active ingredient is 4.8 mg of pudina ark and 3.90mg of nilgiri oil which is nothing but eucalyptus oil. In view of the HSN explanatory notes mentioned above, actifresh would be classifiable as sugar confectionery under heading 1704, as the ingredients are mainly flavoring agents not having any therapeutic value. For the same reason, plethico mint tablet which, in addition to the sugar/glucose base contains 0.15 mg of pudina ark would be classifiable as sugar confectionery unde heading 1704 .....

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a, kulingam, chirmitri patra and pudina satva. In our view since, this product, though with a base of sugar/ glucose has ingredients based on various herbs which have therapeutic value for giving relief in case of sore throat; the same would be classifiable under heading 3004 of chapter heading 30 of the central excise tariff. 11. One of the objections of the Department is that in respect of the products, in question, the percentage of medicament is very small and also no doses are prescribed an .....

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