2006 (11) TMI 408 - AT - Central Excise

Summary

Issues involved: Classification of the product "Kissan Sauce Tom Tom Tomato Ketchup" under CET sub-heading 2103.10 for exemption under Notification 6/2002-CE dated 1-3-2002.

Details of the judgment:

The dispute in this appeal revolves around the eligibility of the product "Kissan Sauce Tom Tom Tomato Ketchup" for exemption under Sr. No. 10 of Notification 6/2002-CE dated 1-3-2002, falling under CET sub-heading 2103.10. The contention arises from the denial of exemption on the grounds that the product, although classified under CET sub-heading 2103.10, is considered a "Mixed Condiment and Mixed Seasoning" not covered by the said Notification.

Upon examination, it was found that the product is composed of various ingredients such as tomato paste, sugar, salt, acetic acid, emulsifying agents, preservatives, onion, spices extract, and garlic. The Commissioner's reasoning, based on para 4 of Note (A) to Chapter 21.03 in HSN, categorized it as a mixed condiment. However, it was noted that the said Note encompasses both sauces and preparations thereof, as well as mixed condiments and mixed seasonings, contrary to the Commissioner's interpretation.

The discussion on Chapter 9 in the Commissioner's order was deemed irrelevant as the appellants did not argue for classification under Chapter 9. While acknowledging that mixtures constituting mixed condiments or mixed seasonings are classified in heading 21.03 as per Note 1(b) to Chapter 9 of HSN, it was clarified that the product in question falls under the category of sauces covered by Sr. No. 10 of Notification No. 6/02. Consequently, the impugned order imposing duty demand, Educational Cess, and penalty was set aside, and the appeal was allowed.