2005 (1) TMI 611 - AT - Central Excise

Summary

Issues: Classification of product under Central Excise Tariff - Heading No. 2105 or Heading No. 2108.99.

The judgment by the Appellate Tribunal CESTAT, New Delhi, involved an appeal by the Revenue against an Order-in-Appeal classifying a product under Heading No. 2105 of the Central Excise Tariff. The Revenue contended that the product, although used in the manufacture of ice cream, should be classified under Heading No. 2108.99 instead. The respondents were manufacturing ice cream and a liquid dessert mix used in ice cream production. The Revenue argued that the liquid mix was not ice cream, hence should not be classified under Heading No. 2105. On the other hand, the respondents claimed classification under Heading No. 2108.99 due to bulk clearance without branding.

The Tribunal noted that the respondents were indeed clearing a liquid dessert mix used in making ice cream and softy. The Revenue did not dispute these facts. Heading No. 2105 covers ice cream and other edible ice, while Heading No. 2108 includes edible preparations not elsewhere specified. Since the liquid mix was used in ice cream production, the Tribunal found no error in the original classification under Heading No. 2105. Consequently, the appeal by the Revenue was dismissed by the Tribunal.

The judgment was delivered by S.S. Kang, Vice-President, on 27-1-2005. The representatives for the parties were Shri U. Raja Ram, JDR, for the Appellant, and Shri Ravinder Narain and Ms. Sonia Bhatnagar, Advocates, for the Respondent. The Tribunal heard arguments from both sides before reaching the decision.