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2023 (8) TMI 1428 - AT - Central ExciseClassification of goods - Savoury Oats / Silk Oats - classifiable under CETH 1104 12 00 as contended by the appellant or whether classifiable under CETH 1904 20 00 as redetermined by the department - Muesli - classifiable under CETH 1904 10 90 as adopted by the appellant or whether classifiable under CETH 1904 20 00 as redetermined by the Department? - time limitation. Classification of goods - Savoury Oats / Silk Oats - classifiable under CETH 1104 12 00 as contended by the appellant or whether classifiable under CETH 1904 20 00 as redetermined by the department - HELD THAT - In the case of Mahavir Food Products Vs CCE Vadadora 2007 (3) TMI 9 - CESTAT, AHMEDABAD , the Larger Bench of the Tribunal had occasion to consider the classification of Makai Poha which was corn grains boiled and flattened between rollers, but not roasted. The assessee was of the view that as the product cannot be eaten as prepared food by itself or after soaking cannot be classified under 1904 and has to be classified under 1104. The Larger Bench held that the Heading 1904 covers prepared food obtained by swelling or roasting of cereals. If the flakes are processed beyond the extent covered under Heading 1104 so as to be ready for consumption it would fall under 1904 - The decision in the case of Miki Food Products Vs CCE Ahamedabad 2008 (3) TMI 588 - CESTAT, AHMEDABAD was another case in which the issue was with regard to the classification of Maize Pauva . The Department had classified the said item under 1904 whereas the assessee had claimed classification under 1101 contending that the product is not ready to eat product. The Tribunal relying upon the decision in the case of Mahavir Food Products 2007 (3) TMI 9 - CESTAT, AHMEDABAD held that the goods are classifiable under 1101. The product Savoury Oats / Silk Oats merit classification under CETH 1104 12 00 and not under 1904 20 00 as determined by the authorities below. Classification of Muesli - HELD THAT - The adjudicating authority has redetermined the classification under 1904 20 00 by holding that assessee has not furnished any evidence to show that whole rolled oats are dry kilned (roasted). From the flow chart given, it can be seen that whole rolled oats have undergone the process of roasting for use in the manufacture of Muesli. Therefore, the said product (Muesli) merit classification under Chapter Heading 1904 10 90 as adopted by the appellant. Time Limitation - HELD THAT - The appellant had issued a letter to the department with regard to the manufacture of Savoury Oats. They had also informed the details of the process and the classification adopted by them. Further, the issue is purely interpretational in nature. For these reasons, the invocation of extended period is not proper and valid. Appeal allowed.
Issues Involved:
1. Classification of 'Savoury Oats' and 'Silk Oats'. 2. Classification of 'Muesli'. 3. Invocation of extended period for demand. Summary: 1. Classification of 'Savoury Oats' and 'Silk Oats': The appellant, engaged in the manufacture of various oat products, contended that 'Savoury Oats' and 'Silk Oats' should be classified under CETH 1104 12 00, attracting a 'nil' rate of duty. The department argued that these products should be classified under CETH 1904 20 00, attracting a 12% duty, as they believed the products were prepared foods obtained from unroasted cereal flakes. The Tribunal held that the process undertaken by the appellant, involving mixing plain oats with dehydrated vegetables and seasoning, did not result in a new distinct product. The products remained as 'rolled oats' and were not ready-to-eat preparations. Thus, 'Savoury Oats' and 'Silk Oats' were correctly classifiable under CETH 1104 12 00. 2. Classification of 'Muesli': The appellant classified 'Muesli' under CETH 1904 10 90, arguing that the oats used were roasted whole rolled oats, giving the product a crunchy texture. The department classified it under CETH 1904 20 00, arguing that the oats were unroasted. The Tribunal found that the whole rolled oats used in 'Muesli' were indeed roasted, as evidenced by the manufacturing process and certificates from the supplier. Therefore, 'Muesli' was correctly classifiable under CETH 1904 10 90. 3. Invocation of Extended Period for Demand: The appellant had informed the department about the manufacture and classification of 'Savoury Oats' through a letter and provided details of the process. The Tribunal held that the issue was interpretational in nature and that there was no suppression of facts by the appellant. Therefore, the invocation of the extended period for demand was not justified. Conclusion: The Tribunal set aside the impugned orders, holding that: - 'Savoury Oats' and 'Silk Oats' are classifiable under CETH 1104 12 00. - 'Muesli' is classifiable under CETH 1904 10 90. The appeals were allowed with consequential relief.
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