2006 (4) TMI 364 - AT - Central Excise

Summary

Issues:
Classification of big crystal sugar/sugar candy under Heading 1701.39 or 1704.90.

The judgment addresses the dispute concerning the classification of big crystal sugar/sugar candy under Heading 1701.39 or 1704.90. The Commissioner (Appeals) based the classification on the definition of sugar in Note (2) to Chapter 17, emphasizing the sucrose content exceeding 90%. The process of manufacturing involved only dissolving sugar in water and re-crystallization, without adding any other ingredients. As per the Explanatory Note to Chapter 17.04, sugar preparations involve adding other ingredients to form a new product, which was not the case here. Despite being big crystal sugar, the product did not qualify as a sugar preparation and was rightly classified under CSH No. 1701.39. The Tribunal decision in a previous case further supported this classification, stating that large-sized sugar crystals are not confectionery and should not be classified under Heading 1704. Therefore, the authorities' classification under Heading 1701.39 was upheld, and the Revenue's appeal was rejected.

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