2013 (9) TMI 1027 - AT - Customs

Summary

Issues involved: Whether the appellants are required to pay cess on menthol crystals u/s Spices Cess Act, 1986.

Summary:
The appellants, engaged in the manufacture of menthol/menthol crystals, classified the product under Customs Tariff Heading 2906 11 00. The Revenue contended that as per the Spices Cess Act, 1986, the appellants must pay Export Cess on exports of Mint, including menthol crystals. A show cause notice was issued, and the demand of cess was confirmed, leading the appellants to appeal.

The appellants argued that as per the Spices Board Act, levy of cess is on spices, and since Mint is excluded from spices under Chapter 9 of the Customs Tariff Heading, they are not liable to pay cess. On the contrary, the department argued that the appellants are manufacturing menthol crystals predominantly mint, making them liable to pay cess u/s Spices Cess Act, 1986.

After considering the submissions, the Tribunal held that as per the definitions under the Spices Board Act, 1986, mint is considered a spice, and the appellants are liable to pay cess u/s Spices Cess Act, 1986. The Tribunal emphasized that the classification of menthol crystals under a separate chapter does not exempt them from paying cess as per the relevant Act. The Tribunal dismissed the appeal, upholding the impugned order and confirming the appellants' liability to pay cess.

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