2004 (6) TMI 338 - AT - Central Excise

Summary

Issues Involved: Classification of Pizza Tomato Base under Central Excise Tariff Act

1. Issue 1: Classification of Pizza Tomato Base
The primary issue in this appeal was the classification of Pizza Tomato Base manufactured by M/s. Nestle India Ltd. under the Central Excise Tariff Act. The question was whether it should be classified under sub-heading 2103.90 as per the Commissioner (Appeals) decision or under sub-heading 2103.10 as claimed by the Revenue.

2. Analysis for Issue 1
The Revenue argued that the product should be classified under sub-heading 2103.10 based on the brand name connection established by the label mentioning the product name and the manufacturer's name. They relied on a previous decision where a similar situation led to duty liability. In contrast, the respondents' Advocate referred to a Tribunal decision involving Dabur India Ltd., emphasizing the importance of the manufacturer's name on the label as per food regulations. The Tribunal's decision in the Dabur India Ltd. case highlighted the significance of mentioning the manufacturer's name as required by the Prevention of Food Adulteration Rules, which influenced the classification. The Tribunal found that merely mentioning the manufacturer's name without an insignia did not warrant classification based on brand name criteria. This ruling differed from the previous decision cited by the Revenue, which did not consider the food regulations mandating the manufacturer's name and address on the packaging.

3. Conclusion
The Appellate Tribunal, considering the provisions of the Prevention of Food Adulteration Rules and the significance of the manufacturer's name on the label, sided with the respondents. Since the appellants had complied with the regulatory requirement by mentioning their name and address on the unit container, the Tribunal rejected the Revenue's appeal for classifying the Pizza Tomato Base under a different sub-heading. The decision in the Tarai Foods case was deemed inapplicable due to the absence of reference to the food regulations mandating the manufacturer's details on the packaging. Therefore, the appeal by the Revenue was dismissed based on the Tribunal's analysis of the classification criteria under the Central Excise Tariff Act.