2011 (3) TMI 1178 - AT - Central Excise

Classification - Everest Badam-Pista Mix - as per Tribunal the said product merit classification under sub-heading No.2107.91 and not as nuts falling under sub-heading No.0801.10 Held that - After taking into account the amendment made to the Central Excise tariff, which had aligned the excise tariff with the HSN and the Customs tariff with effect from 28/02/2005 the product being an edible preparation of nuts, merits classification under sub-heading No.2008.1990 with effect from 28/02/2005. This classification is applicable only for the period from 28/02/2005 onwards in the context of the amended excise tariff. Therefore, in the instant case also the Badam Pista Mix which has the same composition as the Milk Masala would merit classification under sub-heading 2008.1990 only from 28/02/2005 onwards. For the period prior to this date there is already a judgement of the Tribunal holding the product to be classifiable under 2107.91. Therefore, for the period prior to 28/02/2005 the said Tribunal decision would prevail.

Summary

Issues:
Classification of the product 'Everest Badam-Pista Mix' under Central Excise Tariff headings 2107.91, 2108.99, and 2008.1990.

Analysis:
1. The appeal challenges the order-in-appeal regarding the classification of 'Everest Badam-Pista Mix' under heading No.2108.99, upholding the decision of the Assistant Commissioner.
2. The product consists of nuts, spices, and saffron, with specific percentages of each ingredient.
3. Previously sold as 'Everest Milk Masala' under heading No.2107.91, attracting a 16% duty rate, a Tribunal order classified it as such in 1991.
4. Despite a name change to 'Everest Badam-Pista Mix', the product's constitution remained the same, leading to a reclassification request under heading 0801.10 for a nil duty rate.
5. The appellant argues that the product's essential character is that of edible nuts, thus should be classified under heading 0801.10.
6. Alternatively, the appellant suggests classification under heading No.2008.1990 based on a similar case involving 'Everest Kesari Milk Masala'.
7. The Department argues that the product should maintain its original classification under heading No.2107.91 due to unchanged constitution and use.
8. A previous Tribunal decision on a similar product, 'Everest Milk Masala', classified it under sub-heading No.2008.1990 effective from 28/02/2005 due to an amendment aligning the excise tariff with the HSN.
9. The judgment concludes that 'Everest Badam Pista Mix' should be classified under heading No.2107.91 or 2108.99 before 28/02/2005 and under heading No.2008.1990 from that date onwards, aligning with the previous Tribunal decisions.

This detailed analysis covers the issues of classification under different Central Excise Tariff headings and the arguments presented by both parties, leading to the final judgment by the Appellate Tribunal CESTAT, Mumbai.