2010 (8) TMI 798 - AT - Central Excise

Summary

Issues involved: Classification of packed food for duty imposition under CET sub-heading 2106.90.99, applicability of Notification No. 3/2006-C.E., and penalty imposition.

Classification of packed food: The Commissioner confirmed a duty demand on packed food for aircraft passengers as "ready to eat packaged food" under CET sub-heading 2106.90.99, attracting 8% duty u/s Sl. No. 30 of Notification No. 3/2006-C.E. The claim that the food is not excisable due to short shelf life and for coverage under Nil rate of duty u/s Sl. No. 42 was rejected.

Interpretation of 'food preparations': The Tribunal disagreed with the adjudicating authority's distinction between "food preparations" and "ready to eat packaged foods." It held that ready to eat packaged foods also fall under food preparations as per Chapter 21.06, which covers "foods preparations not elsewhere specified or included." Since the food in question is not cleared in sealed containers, it qualifies for Nil rate of duty under Sl. No. 42 of Notification No. 3/2006-C.E.

Applicability of earlier notification: The Tribunal noted that prior to the amendment introducing Sl. No. 42, the assessees were covered by Notification No. 15/06-C.E., exempting food preparations falling under tariff item 21069099 from duty payment during a specific period.

Decision: Considering the above, the Tribunal set aside the duty demand and penalties imposed, thereby allowing the appeals of the appellant company and its Finance Manager.

Separate Judgment: No separate judgment was delivered by the judges in this case.