2004 (9) TMI 427 - AT - Central Excise

Issues Involved:
1. Classification of products under Chapter Heading 9.03 (as spices) or Chapter Heading 2108.99 (as edible preparations not elsewhere specified or included).

Issue-wise Detailed Analysis:

1. Classification of products under Chapter Heading 9.03 (as spices) or Chapter Heading 2108.99 (as edible preparations not elsewhere specified or included):

The central controversy in this case pertains to the classification of various products, specifically whether they should be classified under Chapter Heading 9.03 as spices or under Chapter Heading 2108.99 as edible preparations not elsewhere specified or included. The products in question include items like Pathar Hazam Churan, Churan Anardana, Punch Anardana, Anardana Goli, Rochak Anardana, Anardana Special, Heeng Ki Tikiya, Jeera Goli Special, Jeera Goli, Jeera Goli-Il, Jeerawati, Jeeron, Hazma Hazam, Gat Hazam, Aam Wati, Hapus, Orangi, Punch Lamina, Neembu Wati, Neembu Punch, Heeng Wati, Heeng Wati Special, Heeng Wati Extra Strong, Heeng Gola, Podina Wati, Sonth Wati, Peepal Wati, Ajnol, Dayonin, Shodhy Harad, and Harad Hand-made.

Definition of Spices and Condiments:
The respondents claimed classification under Heading 9.03 by relying on the definition of 'Spices' as given under Chapter Note 3 to Chapter 9, which states:
"Heading No. 9.03 covers spices, a group of vegetable products (including seeds, etc.), rich in essential oils and aromatic principles, and which, because of their taste, are mainly used as condiments. These products may be whole or in crushed or powdered form. The addition of other substances to spices shall not affect their inclusion in this heading provided the resulting mixtures retain the essential character of spices included in this heading. The heading also includes product commonly known as 'Masalas'."

Condiment Definition:
The term 'Condiment' was not defined in Chapter Note 3 or elsewhere in Chapter 9, thus necessitating reference to its dictionary meaning. Various sources define 'condiment' as something used to give a relish to food and to gratify the taste, usually a pungent and appetizing substance such as pepper or mustard seasoning. It is a substance used either during the preparation of food or added to the prepared food on the table to add flavor or taste.

Tribunal's Analysis:
The Tribunal concluded that the products in question, despite being prepared from mixtures of various spices, do not retain the essential character of spices. These products are marketed and sold as digestive tablets, not as spices or condiments. The Tribunal emphasized that these products are not used in the preparation of food or added to food to enhance flavor or taste, thus lacking an integral relation to food prior to its consumption.

Precedent Cases:
The Tribunal referenced previous cases such as Jalani Enterprises v. CCE, Jaipur, where 'Jaljira' was classified under Chapter Heading 2108.99 despite being prepared with spices, as it was commonly known and used as a drink, not a spice. Similarly, in CCE, Jaipur v. Jain Products, digestive tablets called "Churan Goli" were classified under Heading 21.08, not as spices under Heading 9.03. The Tribunal also noted that products like 'red chilli powder' and 'Amchur' classified under Chapter 9 in Mahashian Di Haiti (Pvt.) Ltd. v. CCE, New Delhi, were distinctly known and used as spices, unlike the products in question.

Conclusion:
Based on the above analysis, the Tribunal held that the products in question are not classifiable under Heading 9.03 as spices. Instead, they fall under Chapter Heading 2108.99 as edible preparations not elsewhere specified or included. Consequently, the impugned order of the Commissioner (Appeals) classifying the products under Chapter Heading 9.03 was set aside, and the appeal of the Revenue was accepted.

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