2004 (12) TMI 427 - AT - Central Excise

Summary

Issues: Classification of the product Katha Lime mix under sub-heading 1301.10 or sub-heading 2108.99 of the CETA.

In this case, the appellants challenged the order-in-appeal regarding the classification of the product Katha Lime mix. The dispute revolved around whether the product should be classified under sub-heading 1301.10 or sub-heading 2108.99 of the CETA. The appellants argued that the product should be classified under sub-heading 1301.10 as it is not a food product but a vegetable sap with lime mixed in it. The Revenue contended that the product is similar to pan chutney and should be classified under Chapter 21. The Tribunal analyzed the nature of the product and its preparation, noting that the addition of lime to Katha did not transform it into a food product. The Tribunal referred to the HSN Notes, which supported the classification of vegetable sap under Chapter 13. It emphasized that Chapter 13 is specific and prevails over the general Chapter 21. The Tribunal disagreed with the Commissioner's classification under sub-heading 2108.99, stating that the product falls under sub-heading 1301.10. The Tribunal distinguished this case from a previous judgment involving pan chutney, highlighting that the Katha Lime mix is not consumed with or after food. Consequently, the Tribunal set aside the impugned order and allowed the appeal, granting applicable relief to the appellants as per the law.