2006 (11) TMI 28 - AT - Central Excise

Edible preparation Cheetos Masala Balls classified under Heading 19.04 of CET Meal blend have cooked by heating, hence classification under Heading 19.04 ibid further not sustainable Classifiable under Sub- heading 2108.99 ibid

Summary

Issues involved:
Classification of 'Cheetos Masala Balls' and 'Cheetos X & O' under CET sub-heading 1904.10 or 2108.99.

Detailed Analysis:

1. Issue of Classification: The appeal pertains to the classification of two products, 'Cheetos Masala Balls' and 'Cheetos X & O', manufactured by the appellants. The Commissioner of Central Excise, Pune confirmed a duty demand and imposed a penalty. The key question is whether these products should be classified under CET sub-heading 1904.10 or under sub-heading 2108.99. The former pertains to prepared foods obtained by swelling or roasting of cereals in a container, as per the Commissioner, while the appellants argue for classification under sub-heading 2108.99 for edible preparations bearing a brand name.

2. Manufacturing Process Analysis: The ingredients and manufacturing process of the products were examined. The Cheetos Masala Ball contains corn meal, rice meal, gram flour, wheat fibre, water, and seasoning, while the second product includes corn meal, edible oil, seasoning, and water. The manufacturing process involves blending, extrusion, drying, seasoning application, and packaging. The process includes blending corn meal, extruding the blend in a hot atmosphere, drying to reduce moisture content, applying seasoning, and packaging the final product.

3. Legal Precedents and Interpretation: The appellants argue that the products are commonly known as 'Namkeens' and should be classified under sub-heading 2108.99 based on Note 10 to Chapter 21. They rely on the Tribunal's order in a similar case and the Supreme Court's affirmation of the Tribunal's decision regarding the classification of certain food products. Additionally, they contend that the presence of ingredients like gram flour and wheat fibre precludes classification under Heading 19.04, citing a previous Tribunal decision on a similar product.

4. Final Decision: After considering the arguments, the Tribunal holds that the disputed products should be classified under CET sub-heading 2108.99. The Tribunal sets aside the impugned order and allows the appeal in favor of the appellants. The decision is based on the analysis of the manufacturing process, legal interpretations, and precedents cited by the appellants to support their classification claim.

This detailed analysis covers the issues involved in the legal judgment regarding the classification of 'Cheetos Masala Balls' and 'Cheetos X & O' and provides a comprehensive understanding of the decision rendered by the Appellate Tribunal CESTAT, Mumbai.