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2003 (12) TMI 395 - AT - Central Excise
Issues: Classification of Churan Goli - Chapter Heading 9.03 or 21.08
In this appeal, the issue revolves around the classification of the product Churan Goli manufactured by the respondents. The respondents argue that the product should be classified under Chapter Heading 9.03 as spices, while the Department contends it should fall under Chapter Heading 21.08. The adjudicating authority initially sided with the Department, but the Commissioner (Appeals) reversed this decision, classifying the product under Chapter Heading 9.03. Upon reviewing the case, it was noted that the respondents are involved in the manufacturing of various edible products, including Churan Goli. While most of their products were correctly classified under Chapter 9.03, the Commissioner (Appeals) classified Churan Goli under the same heading, which was disputed. The Commissioner's rationale was that the addition of certain spices to Churan Goli did not change its essential character as a spice falling under Chapter 9.03. However, it was argued that Churan Goli is not typically used as a spice or condiment with food but is consumed directly by individuals, akin to other products like Jal Jeera or Chat Masala. Furthermore, reference was made to the Board's Circular regarding the classification of Indian Traditional convenience food mixes, masalas, and condiments. The Circular emphasized that products predominantly comprising mixtures of spices/condiments/seasonings used as such should be classified under Heading 2103 as mix edible preparations. It was argued that Churan Goli does not meet the criteria to be classified as a spice and, therefore, should not fall under Chapter 9 or even Heading 21.03 but should be classified under the residuary Heading 21.08. Conclusively, the impugned order of the Commissioner (Appeals) was set aside, and the classification of Churan Goli under Chapter Heading 21.08 of the Central Excise Tariff Act was upheld. As a result, the appeal of the Revenue was allowed, emphasizing the correct classification of the product in question.
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