2007 (3) TMI 609 - AT - Central Excise

Summary

Issues involved:
The correct classification of the product "FUNDA" under the Central Excise Tariff.

Details of the judgment:

Classification of the product "FUNDA":
The appellant argued for classification under 1704 90 90 as Sugar Confectionery, while the department contended for classification under Chapter Heading 21.06 as Food Preparations. The appellant's product, FUNDA, contains sugar, synthetic food color, flavoring substances, and moisture. It undergoes a process resulting in granules easily soluble in water, similar to Glucon C or Glucon D. The appellant relied on HSN Explanatory Notes under 17.04, case laws, and a CBEC circular to support their classification argument under Chapter 17. They also highlighted that FUNDA is not akin to products listed under Note 6 of Chapter 21, supporting their contention against classification under 21.06. The Tribunal found that FUNDA, like Glucose D, contains sucrose and should be classified under Chapter 17, not Chapter 21.06. The Tribunal emphasized that Chapter Heading 21.06 is a residuary heading and should be used only if the product cannot be classified elsewhere. By applying the Principle of ejusdem generis, the Tribunal concluded that FUNDA does not fall under Chapter heading 21.06, allowing the appeal in favor of the appellant.

Conclusion:
The Appellate Tribunal CESTAT, Bangalore ruled in favor of the appellant, classifying the product "FUNDA" under Chapter 17 instead of Chapter 21.06, based on the similarities with Glucose D and the principles of classification under the Central Excise Tariff.