2007 (3) TMI 637 - AT - Central Excise

Summary

Issues: Classification of skimmed milk under Central Excise Tariff - Sub-headings 0401.13 and 0401.19

In this case, the primary issue revolves around the classification of skimmed milk under the Central Excise Tariff, specifically under sub-headings 0401.13 and 0401.19. The appeal challenges the order of the Commissioner (Appeals) upholding the classification of skimmed milk under Chapter heading 0401.13, attracting an 8% Central Excise duty.

Detailed Analysis:

The Tribunal referred to previous decisions to analyze the classification issue. In the case of M/s. Dalmia Industries Ltd. v. Collector of Central Excise, it was held that partially skimmed milk falls under sub-heading 0401.19, attracting a nil rate of duty. This decision was based on the differentiation between skimmed milk and partially skimmed milk as separate marketable commodities.

Further, in Union of India v. M/s. Food Specialities Ltd., the Supreme Court emphasized the distinction between partially skimmed milk powder and skimmed milk powder. The Court noted that these products are recognized as distinct in various specifications and standards, leading to the classification of partially skimmed milk under sub-heading 0401.19.

The Tribunal also considered the decision in Mehsana District Co-op. Milk Products Union Ltd. v. CCE, Ahmedabad, which rejected the claim that sub-heading 0401.13 only pertains to whole milk powder. It was specifically stated that skimmed milk powder is classifiable under sub-heading 0401.13, in line with the Central Excise Tariff.

Based on the precedents and the interpretation of the sub-headings, the Tribunal concluded that the appellant's skimmed milk powder falls under heading 0401.13. The decision aligned with the previous rulings and upheld the classification of skimmed milk under the specified heading, leading to the dismissal of the appeal.

In conclusion, the judgment provides a detailed analysis of the classification of skimmed milk under the Central Excise Tariff, highlighting the differentiation between various milk products and the relevant sub-headings. The decision reaffirms the classification of skimmed milk powder under sub-heading 0401.13 based on established legal interpretations and precedents.