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2015 (9) TMI 1207 - CESTAT NEW DELHI

2015 (9) TMI 1207 - CESTAT NEW DELHI - 2015 (324) E.L.T. 567 (Tri. - Del.) - Classification of mixtures of spices - whether under Chapter 9 of the Central Excise Tariff as claimed by the appellant or under Chapter 21 as stated by the Department - Held that:- The conclusion of the Original Authority is not substantiated to the effect that how such addition of certain chemicals or additives has taken away the essential character of the spice mix. The predominant and the critical character of the m .....

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d are the spices as understood in common parlance as well as by the experts in the field. The Spice Board clearly indicates the garlic and tamarind as Indian spices. Hence, the addition of these items if at all cannot be a consideration for excluding the classification for spice mixtures under Chapter 9. Having closely examined the scope of entry under Heading No.2103 and the scope of Chapter 9 of the Central Excise Tariff, we come to the conclusion that the spice mixtures produced by the appell .....

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a total of 9 appeals of which 4 are filed by the main appellant, M/s. Pepsico India Holdings Pvt. Ltd. The other 5 appeals are by individuals and their appeals are against imposition of penalties. As the issue involved is same in all these appeals, the matter is taken-up together for decision. The issue involved, in brief, is as below: 2. The main appellant is engaged in the manufacture of various namkeens and potato chips with the different flavours. In order to give various flavours to these p .....

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s different combination of mixtures of spices as per their requirement to be used in various types of namkeens and potato chips, etc. marketed by them. The short question involved is the classification of such mixtures of spices whether under Chapter 9 of the Central Excise Tariff as claimed by the appellant or under Chapter 21 as stated by the Department. 3. Heard both the sides and perused the appeal records and written submissions. 4. Ld. Counsel for the appellant, Shri B.L. Narsimhan pleaded .....

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stances to the products of Headings no.0904 to 0910 (mixtures as referred to above) provided the resulting mixtures retain the essential character of the goods of those headings. 5. Otherwise such mixtures are not classifiable under Chapter 9 and will be classifiable under Heading No.2103. He also drew our attention to the supplementary notes (2) and (3) of Chapter 9 to reinforce his point. The HSN Explanatory Notes also stipulate in similar lines for classification of mixed spices with added su .....

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10 in that they also contain one or more flavouring or seasonings substances of Chapters other than Chapter 9, in such proportions that the mixture has no longer the essential character of a spice within the meaning of Chapter 9." 6. Ld. Authorised Representative reiterating the findings in the order-in-original of the ld. Commissioner stated that the basic principles for determination of classification of the mixtures under Chapter 9 or under Heading No.2109 is that" the retention of .....

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ed by the appellant in their various namkeen products, the Original Authority did not agree with the said affidavits and concluded that spice mixtures have not retained their essential character as new spice mix with a definite taste totally different from original taste is manufactured for a specific use. On this finding of the Original Authority, the ld. Counsel for the appellant strongly pleaded that there is no two set of spice mixtures in the course of manufacture of namkeens. There is no c .....

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is clear that much emphasis has been given regarding addition of other substances along with the spices and hence, the classification of the resultant mixture was sought to be excluded from Chapter 9. However, the findings are not clear as to the nature of such substances and how the essential character of the spice mix is lost on addition of the other substances. It is clear from the Chapter Note under Chapter 9 that mixtures of two or more of the spices (Heading No.0904 to 0910) ought to be cl .....

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ound that the spices mixed have not retained their essential character but a new spice mixture with a distinct flavour has emerged. It would appear that the conclusion of the ld. Commissioner is based on the wrong appreciation of facts. It is a fact that we are dealing with mixture of spices. Such mixtures will have an essential character not necessarily that of single ingredient spice but of combination of such spices as per their proportion. Even if the additional materials are added what is r .....

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tiated to the effect that how such addition of certain chemicals or additives has taken away the essential character of the spice mix. The predominant and the critical character of the mix is derived from the spices only. The addition of additives and chemicals for whatever proportion has not taken away the essential character of the spice mix in its flavour, aroma, etc. There is no concrete evidence or discussion in the finding of the Original Authority to that effect. 9. Board's Circular N .....

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