2003 (3) TMI 467 - AT - Central Excise

Summary

Issues involved: Classification of the product "Jaljira powder" under the tariff headings 09.03 (spices) and 21.08 (other edible preparation), imposition of penalty without sufficient basis.

In the judgment by the Appellate Tribunal CEGAT, Mumbai, the common question for consideration in two appeals was the classification of "Jaljira powder" manufactured and cleared by the appellant. The appellant claimed classification under Heading 09.03 of the tariff for spices, but the adjudicating authority classified it under Heading 21.08 for "other edible preparation," a decision upheld by the Commissioner (Appeals) in each case. The Tribunal at Delhi had previously classified a similar product under Heading 21.08, and the challenge to this classification was unsuccessful as the product was deemed a mixture of spices not warranting a different classification.

Regarding the penalty imposed on the appellant in one of the appeals, the Tribunal found no specific reason provided for the penalty in the orders of the authorities. Given that the issue primarily revolved around classification and no sufficient basis was shown for the penalty, the Tribunal concluded that the penalty was unwarranted. Consequently, one appeal was allowed in part while the other was dismissed.