TMI Blog2006 (9) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... e following process: Aniseeds and Magajtarbuj seeds are purchased from the market. They are cleaned manually and roasted in vegetable oil. To these cleaned coriander seeds are added. Saccharin, Licoriaca, Menthol, Borneiol permitted flavours and preservatives are added to the said preparation of roasted Aniseeds and Magajtarbuj seeds and cleaned coriander seeds. The mixture so prepared is filled into pouches and sold in the name of "Crane-Mouth Frenshner". The item is for human consumption as mouth freshner. Revenue contends that the item has to be classified only under Chapter sub-heading 2103.10 as the item is understood in the market as Spices. The popular meaning attached to them or as they were understood in commercial/trade parlance should be accepted and in this regard the ruling of the Apex Court judgment rendered in the case of Shree Baidyanath Ayurved Bhavan Ltd . v. CCE, Nagpur - 1996 (83)E.L.T. 492 (S.C.) is relied. It is stated that the reliance placed by the Commissioner on Board's Circular No.197/31/96-CX dated 15-4-1996 for classifying the product under Chapter heading 0903.10 is not correct. As the said Circular discusses about the classification of Dhana Dal/Dh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Chemical Examiner. It sold in the market as "Mouth Freshner", which is nothing but mixture of seeds (coriander, aniseeds) in palatable base and therefore, it does not require to be classified under Chapter Heading 21.03. 5 We have . carefully considered the submissions and have perused both the orders. The finding given by the Commissioner is very exhaustive. He has analyzed every aspect of the matter and also in the light of the HSN Explanatory notes. The Revenue wants the product to be classified under Chapter Heading 21.03, which description deals only with sauces and ketchups. The item does not fit into the said items described in Chapter Heading 21. The learned JDR relied on the judgment rendered in the case of MTR Food Products v. CCE , Bangalore - 2000 (118) E.L.T. 392 (T), which deals with Sambhar mix/Rasam mix, which has been held to be classifiable under Chapter Heading 21.04. These items are not consumed directly. They are required to be used for cooking purposes, as in the case of items falling under Chapter Heading 21.04. Therefore, this judgment is clearly distinguishable. Even in terms of the Apex Court judgment rendered in the case of Shree Baid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the issue involved in the instant appeal, as was rightly contended by the respondents and their learned Counsel, has indeed been quite elaborately dealt with by the learned Deputy Commissioner while passing the impugned order and I do not find it necessary to reiterate all those observations/findings, here again. However, for better appreciation of the issue on hand, I reproduce hereunder Chapter Note 3 of Chapter 9 which reads thus : "Heading No. 09.03 covers spices, a group of vegetable products (including seeds, etc.), rich in essential oils and aromatic principles, and which, because of their taste, are mainly used as condiments. These products may be whole or in crushed or powdered form. The addition of other substances to spices shall not affect their inclusion in this heading provided the resulting mixture retain the essential character of spices included in this heading. The heading also includes products commonly known as "masalas". 8. The explanatory notes of Section 21.03 of the HSN reads thus : "Mixed condiments and mixed seasonings containing spices differ from the spices and mixed spices of heading Nos. 09.04 to 09.10 in that they also contain one or more fla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Revenue) Central Board of Excise Customs, New Delhi Subject : Classification of Dhana Dal/Dhania Ki Dal/Coriander Seeds sold in pouches. I am directed to say that the doubts have been raised whether product 'Dhana Dal'/Dhania Ki Dal/coriander seeds put up for sale in pouches is classifiable under Heading 09.03 as spices or under Heading 21.08 as miscellaneous edible preparations, not elsewhere specified or included. Gujarat Dhana Dal Manufacturers' Association has contended that 'Dhana Dal' is nothing but spices and as such it is correctly classifiable under Heading 09.03 of Central Excise Tariff. 2. It has been reported that coriander seeds are soaked in water before being put in a milling machine for removal of husk. The husk so removed is reportedly sold as cattle feed while the seeds are dried and salted, mechanically sieved, roasted and then put up for sale either packed in gunny bags or in 3 gins., labelled small pouches. The product is known 'Dhana Dal' in wade. 3. It is observed from the HSN Explanatory Notes to Chapter 9 (coffee, tea, mate and spices) that the said Chapter also covers seeds of spices. Seeds of coriander are specifically covered by Heading 09 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o classify the impugned goods mouth freshner - which is admittedly and predominantly a mixture of spices i.e. aniseeds and coriander seeds - under Chapter-21, I find is self contradictory. Further, as was contested by the respondents and their learned Counsel, recourse also should be made to chapter note 1(c) of Chapter -21 of the HSN in this regard and the same was already dealt with by the learned Deputy Commissioner in the impugned order and I am in agreement with the aforesaid findings on this count. Thereby, on this count too, I do not find any merit in the instant appeal. 13. I further find that reliance was placed in the instant appeal on the case law of M/s. Jalani Enterprises v. CCE , Jaipur - 2001 (132) E.L.T. 422 (Tri.- Del). In order to get at the hard facts of the said case and its relevance to the instant appeal, I extract hereunder the relevant portions of the aforesaid case : "6. In order to decide as to whether the product jaljira is classifiable under Chapter or 21 of the CETA it would be beneficial to refer to the relevant Chapter Headings and the Chapter Notes of both these Chapters. "Chapter 9 : Chapter Heading 0903 reads - Spices ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CCE, Nagpur - 1996 (83) E.L.T. 492 (S.C.). Similarly in Novopan India Ltd v. Collector - 1994 (73) E.L.T. 769 (S.C.) the Apex Court has observed that commercial/trade understanding is the true test for the classification of the goods and not what scientific books like Encyclopedia Britannica, may say. This very view has been again reiterated by the Apex Court in Purewal Associates Ltd. v. CCE - 1996 (87) E.L.T. 321 (S.C.). 8. Viewed in this context, the product, 'jaljira' although prepared by adding some spices cannot be logically said to be 'masala' as it is never understood or taken/accepted/used or called as spice or condiment both in trade parlance as well as common parlance. It is always understood, as drink by the traders and consumers as it is mainly used as drink and not as spice/condiment. 9. The Board's Circular No. 197/31/96-CX, dated 15-4-1996 referred by the counsel before us, does not in any manner advance the case of the appellants for classifying the product jaljira under Chapter 9 of the CETA. That circular pertains to the classification of Dhana Dal/Dhania Ki Dal/Coriander seeds sold in pouches. The Board only classified through that circular that even if th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therein. The product 'jaljira' of the appellants squarely falls within the four corners of this Chapter 21 read with its Chapter Note 9(b) of the CETA. The Board's circular dated 21-12-2000, referred to above also makes the position quite clear about the classification of the jaljira manufactured by the appellants, under Chapter 21 and not Chapter 9 of the CETA. 13. In the light of the discussion made above, the impugned order of the Commissioner (Appeals) upholding the order-in-original of the Deputy Commissioner classifying the product jaljira under Chapter 21 sub-heading 2108.99 (branded) and 2108.91 (unbranded) of the CETA, is perfectly valid and does not suffer from any legal infirmity. That being so, there is no merit in appeal No. E/2521/2000-D of the appellants (emphasis supplied)." 14. From the aforesaid case law, I find that 'jaljira' was prepared by them from salt (40%), kalanamak (1%), Nimbu Ka Sat (citric acid) (8%), Sonth (10%), Kalimirch (10%), Pudhina (10%), Hing (1%), Jira (18%) and Lalmirch (2%) and thereby, the Honourable Tribunal observed that 'jaljira' although prepared by adding some spices, cannot be logically said to be 'masala'. Thus, the constituents ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
