TMI Blog2017 (2) TMI 669X X X X Extracts X X X X X X X X Extracts X X X X ..... P is affixed - In terms of Rule 3(b) of the Interpretative Rules, classification of set has to be made in accordance with that attribute which, the components taken together, can be regarded as conferring the set as a whole its essential character. We note that basmati rice is packed either with dal tadka or rajma masala with an intention of consuming the two together as a meal. Since the essential character of the meal arises out of basmati rice (the subji is eaten along with the rice), we are of the view that the combo pack has to be classified under Heading 21.08 (2106 90 99 for subsequent period) - such products will not be eligible for the benefit of exemption under N/N. 6/2002 dated 1.3.2002 (Sl. No.14) - these combo packs will be liable to duty during the relevant period. The goods should be assessed to duty under Section 4A on the basis of the MRP of the combo pack. Decided partly in favor of assessee - matter on remand for the purpose of quantification of demand - penalty set aside. - E/470 -471/2007-DB - Final Order No. 20227 - 20228 / 2017 - Dated:- 9-2-2017 - Shri S. S. Garg, Judicial Member And Shri V. Padmanabhan , Technical Member Mr. B. V. Kumar, Adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the appellants). Being aggrieved with the said order, an appeal was filed before the Hon ble CESTAT, Bangalore and Final Order No.1484/2006 dated 12.9.2006 was passed by remanding the case for de novo consideration with the following observations: On a careful consideration, we are of the considered opinion that the Commissioner ought to have considered the alternative prayer for reclassification of the item under Chapter sub-heading 2001.10 and also should have considered the claim of benefit of Notification No.6/2002 dated 1.3.2002 vide Sl. No.9. The Commissioner has also not considered the aspect pertaining to treating the duty as cum duty. Therefore, we are of considered opinion that the impugned order is required to be set aside and the matter remanded for de novo on all points . In terms of the above said order of Hon ble Tribunal, de novo proceedings were held before the Commissioner on 7.3.2007. The appellants appeared before the said Commissioner and submitted their arguments and also filed written submissions. Thereafter the Commissioner of Central Excise Bangalore-I passed Order-in-Original No.13/2007 dated 24.3.2007. Being aggrieved with the said order, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eparately packed products which are further packed into a single pack and sold as such. He argued that since these combo packs consists of two different products classifiable under two different chapter subheadings, these should be classified under their respective chapter headings and have to be assessed independently in terms of Rule 3(b) of the Interpretative Rules. On the above basis, he submitted that basmati rice would be classifiable under 2106 90 99 as ready-to-eat product which is liable to duty and rajma masala/dal tadka are classifiable under subheading 2001.10 and are eligible for nil rate of duty under Notification No.6/2002 dated 1.3.2002. (iii) The learned advocate further argued that the valuation for the purposes of charging duty on the basis of MRP should also be done differently. His submission is that within the combo packs, the packet of dal tadka and rajma masala are of normal weight of 285 grams which are sold by the appellants at an MRP of ₹ 35/-. Since the combo pack has MRP of ₹ 45/-, he submitted that the packet of basmati rice should be assessed by taking MRP as ₹ 10/- (Rs.45/- minus ₹ 35/-). In this connection, he relied up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for which a single MRP is affixed. The appellant has claimed that the two products are required to be classified under respective chapter headings and assessed independently on merits. The combo pack consists of two entirely different products which are put up as a set for use together. In terms of Rule 3(b) of the Interpretative Rules, classification of set has to be made in accordance with that attribute which, the components taken together, can be regarded as conferring the set as a whole its essential character. We note that basmati rice is packed either with dal tadka or rajma masala with an intention of consuming the two together as a meal. Since the essential character of the meal arises out of basmati rice (the subji is eaten along with the rice), we are of the view that the combo pack has to be classified under Heading 21.08 (2106 90 99 for subsequent period). It has already been held in the impugned order that such products will not be eligible for the benefit of exemption under Notification No.6/2002 dated 1.3.2002 (Sl. No.14). Consequently, these combo packs will be liable to duty during the relevant period. 6.1 Appellant has also submitted that the combined MRP of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
