9911796707
TMI Blog2025 (5) TMI 672X X X X Extracts X X X X X X X X Extracts X X X X ..... were imported and cleared for home consumption classifying the same under Tariff Item 2202 99 20 charging IGST @12%. 2. A revenue risk report was received by Ld. Commissioner of Customs, Patna from Additional Director General, NCTC, DGARM, Mumbai, alleging short-payment of customs duty by the appellant no. 1 by resorting to wrong classification of the impugned goods under Tariff Item 2202 99 20 when as per the Department, the same is appropriately classifiable under Chapter Heading 2106 chargeable to IGST @18%. 3. Accordingly, an e-mail dated 05.05.2024 was issued by the Assistant Commissioner of Land Customs Station, Raxaul, to the appellant no. 1 intimating incorrect classification of the impugned goods. The proceedings initiated vide the said e-mail dated 05.05.2024 culminated into issuance of Show Cause Notice dated 07.06.2024. 4. Thereafter, during adjudication, the Ld. Commissioner of Customs, Customs (Preventive) Commissionerate, Patna, 5th Floor, Central Revenue Building, Bir Chand Patel Path, Patna - 800 001 confirmed the demand of differential IGST amounting to Rs.1,05,92,198/-, along with interest, and penalties on the appellant no. 1 under Sections 114A and 114AA of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble juices, unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter. .. .. .. .. .. .. - Juice of any other single citrus fruit 2009 31 00 -- Of a Brix value not exceeding 20 kg 50% - 2009 39 00 -- Other: kg 50% - Relevant extracts of HSN EN to CTH 2009: "The liquids thus obtained are then generally submitted to the following processes : (a) Clarification, ................ (b) Filtration, ............ (c) De-aeration, ........ (d) Homogenisation, ........ (e) Sterilisation, to prevent fermentation. Various methods may be employed, for example, pasteurisation (prolonged or "flash"), electric sterilisation in machines fitted with electrodes, sterilisation by filtration, preservation under pressure using carbon dioxide, refrigeration, chemical sterilisation (e.g., by means of sulphur dioxide, sodium benzoate), treatment with ultra- violet rays or ion exchangers. ..... Provided they retain their original character, the fruit, nut or vegetable juices of this heading may contain substances of the kinds listed below, whether these r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ituted lemon juice obtained by blending lemon juice concentrate with water, wherein the water content is not more than what is there in natural lemon juice. Addition of greater quantity of water than is necessary to reconstitute the original natural juice results in dilution of products which is classifiable as beverages under CTH 2202 As submitted above, the impugned goods (Lemoneez) are not diluted to the extent, which takes it out of the purview of 'fruit juice', to be called a 'beverage'. Further, in a catena of judgments, beverages have been held to be liquids readily available for human consumption, whereas the impugned goods are not consumable as it is, instead the same is a substitute for real lemon which can be used to make various edible preparations. Reliance in this regard is placed on the following judgments: 1) Parle Agro Private Limited v. Commercial Tax Officer, Raipur [2019 (3) TMI 1817] 2) S. Giridhar Shenoy Vs. State of Kerala [(1997) 104 STC 562]. 6.4. In view of the above submissions, the Ld. Counsel for the appellants contended that the impugned goods are appropriately classifiable under Tariff Item 2009 31 00, instead of the inadvertent classific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eged that 'Lemoneez' is not merely a juice/ juice concentrate but is also an 'edible preparation'. 10.1 In this regard, we find that Classification under CTH 2009 and/or 2106 is determined on the basis the composition of the product and the methodology involved in preparing or extracting the same. The classification is not based on end usage of the products. Had the intention been to classify the goods on the basis of end use, then even lemons would have been classified under CTH 2106 as the same can also be used for preparation of salads, Indian curries, marinade chicken/ meat, etc. 11. We also find no force in the observation of the ld. adjudicating authority in the impugned order that if the impugned product is to be classified under CTH 2009, the mechanically extracted lemon juice itself should have undergone the processes of clarification, filtration, de-aeration, etc. as given in the Explanatory Notes to HSN 2009 instead of juice concentrate blended with water. The Explanatory Notes to HSN EN specifically covers reconstituted juices. Hence, the observation made by Ld. Commissioner reflects an incomplete, selective and partial reading of the HSN EN to CTH 2009. 12. Further, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above discussion, prima facie, we find that the appellant no. 1 has rightly classified the impugned goods under CTH 2009 and hence, the demand confirmed vide the impugned order classifying the same under CTH 2106 is unsustainable and liable to be set aside. 15. Further, regarding the classification of the said product under Tariff Item No. 2106 90 19 as alleged by the Revenue in the instant case, we find that the ground taken by the Revenue is that the impugned goods is a soft drink concentrate and thus cannot be construed as a juice/ juice concentrate under CTH 2009. The relevant extract of Tariff Item 2106 90 19 is reproduced below, for ease of reference : Tariff Item Description Unit Rate of Duty Preferential Area Rate (1) (2) (3) (4) (5) 2106 Food preparations not elsewhere specified or included ... .. ... .. .. .. 210690 - Other: --- Soft drink concentrates: 2106 90 19 --- Other: kg 150% - 15.1. In this regard, we find that the term 'soft drink' is per se different from the fruit juices inasmuch as the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mand in the instant case is not acceptable. 17. In view of the above discussion, we hold that the demand confirmed in the impugned order by classifying the impugned goods under Tariff Item No. 2106 90 19 is not sustainable. Consequently, the demand confirmed in the impugned order is set aside. 17.1. Since the demand itself does not survive, the question of demanding interest or imposing penalties on the appellant no. 1 does not arise. 18. Further, regarding the confiscation of the impugned goods and imposition of redemption fine thereon, we find that the same is unwarranted inasmuch as the said goods have already been cleared for home consumption. We find that a similar view has been expressed in the decision of the Hon'ble High Court in the case of Commissioner of Customs (Import), Mumbai vs. Finesse Creation Inc. [2009 (248) E.L.T. 122 (Bom.)] affirmed by Hon'ble Supreme Court as reported in2010 (255) E.L.T. A120 (S.C.).The relevant observations of the Hon'ble Bombay High Court in the above case are reproduced below: - "5. In our opinion, the concept of redemption fine arises in the event the goods are available and are to be redeemed. If the goods are not available, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
