2004 (4) TMI 325 - AT - Central Excise

Summary

Issues:
1. Eligibility of products for exemption under Notification No. 5/99-C.E., dated 28-2-1999.

Analysis:
The appeal before the Appellate Tribunal CESTAT, New Delhi involved the question of whether the products manufactured by M/s. Sonic Biochem Extractions Pvt. Ltd. were eligible for exemption under Notification No. 5/99-C.E., dated 28-2-1999. The Appellant contended that their products, Textured Soya Protein namely "Mealmaker" Soya Chunks and protein-rich Soya granules, fell under the partial exemption provided by the notification for "Preparations in the nature of instant food mixes for consumption after processing." The central issue was whether the impugned products met the criteria set out in the notification for exemption.

The Appellant's Advocate argued that the impugned products qualified for the exemption as they were pre-cooked and could be consumed without further cooking. The Advocate highlighted that the products contained multiple ingredients and could be consumed as is or mixed with other ingredients according to consumer preference. Reference was made to a previous decision where a similar product was held eligible for exemption under a different notification.

On the other hand, the Respondent's representative contended that the impugned product, "Mealmaker," required additional items to be added to make it edible, indicating that it was not an instant food mix eligible for exemption. A precedent case was cited to support this argument.

After considering the arguments from both sides, the Tribunal analyzed the provisions of Notification No. 5/99-C.E. and noted that the impugned product fell under Heading No. 21.08, which was covered by the notification. The Tribunal found that the product was pre-cooked and could be consumed as instant food after cooking. The Tribunal emphasized that the addition of spices and salt after boiling did not change the product's nature as a preparation in the form of instant food mixes. Consequently, the Tribunal set aside the previous order and allowed the appeal in favor of the Appellant, ruling that the impugned product was eligible for the exemption under the notification.

In conclusion, the Tribunal's decision clarified that the impugned product manufactured by M/s. Sonic Biochem Extractions Pvt. Ltd. met the criteria for exemption under Notification No. 5/99-C.E. as it qualified as a preparation in the nature of instant food mixes for consumption after processing, as specified in the notification.