2006 (3) TMI 506 - AT - Central Excise

Summary

Issues:
Classification of entity "Kissan Sauce Tom Tom Tomato Ketchup" under Heading 2103.10 of CETA 1985 for duty exemption.

Analysis:
The judgment addressed the issue of the classification of the entity "Kissan Sauce Tom Tom Tomato Ketchup" under Heading 2103.10 of the Central Excise Tariff Act, 1985 (CETA 1985) for the purpose of duty exemption. The Central Government had issued Notification No. 2/2002-CE granting full exemption from duty to entities falling under Heading 2103.10, which includes "Sauces, Ketchup and the like and preparations therefore; mixed condiments and mixed seasonings; mustard flour and meal and prepared mustard." The lower authorities denied the exemption claimed under Notification 6/2002-CE, stating that the notification only provided exemption for part of the goods under Heading 21.03 of CETA 1985. However, the Tribunal found that the appellant's product falls under the category of "Ketchup and the like and preparations therefore," as per various dictionary definitions of "Ketchup" provided in the judgment. Since the subject goods are known and marketed as "Ketchup" and tomatoes are essential ingredients, the Tribunal concluded that prima facie, the benefit under Notification 6/2002-CE is applicable to the entity under dispute. The Tribunal ordered a full waiver of the pre-deposit requirements and a stay of recovery pending the regular hearing, in accordance with Section 35 of the Central Excise Act, 1944. The detailed analysis considered the definitions of "Ketchup" and the essential ingredients of the product to determine its classification under the relevant tariff heading for duty exemption. The judgment highlighted the eligibility of the entity for the exemption based on the prima facie assessment and the need for further examination during the regular hearing.