2008 (11) TMI 467 - AT - Central Excise

Summary

Issues involved: Classification of synthetic soft drink concentrate under different sub-headings of the Central Excise Tariff Act, 1985.

Summary:
1. The dispute in the appeal was regarding the classification of synthetic soft drink concentrate under sub-heading 2108.10 or 2108.99 of the Central Excise Tariff Act, 1985, or alternatively under Heading 3302. The appellants relied on a Tribunal decision stating that non-alcoholic beverage bases are classifiable under Heading 33.02 for goods used in the food and beverage industry. The Apex Court left the classification issue open in a previous case due to Modvat credit availability. The decision cited by the JCDR did not consider the earlier Tribunal decision. The Tribunal in another case only considered sub-headings 2108.10 and 2108.99, not Chapter Heading 33.02.

2. As the lower appellate authority did not address the alternate claim for classification under Heading 33.02, the impugned order was set aside. The case was remitted for a fresh decision on correct classification to the adjudicating authority, with a directive to provide a reasonable opportunity for the appellants to present their defense.

3. The appeal was allowed by way of remand, with the decision being dictated and pronounced in open court.