2017 (9) TMI 778 - AT - Central Excise

Classification of goods - various spice powder and mixed spices which are commonly called as Masalas - appellant have classified these items under excise tariff entry 09109100 whereas the Revenue contended that it should be classified as mixed condiments and mixed seasoning under Chapter 21 - Held that - similar issue decided in the case of Eastern Condiments P. Ltd. & Others Vs CCE Madurai 2015 (6) TMI 1014 - CESTAT CHENNAI , where it was held that the products of various masalas manufactured and cleared by the appellants as listed out in the respective OIO s are rightly classifiable under chapter heading 0904 to 0910 and not under chapter 2103.90 of CET - appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of products manufactured by the appellant-assessee under excise tariff entry 09109100 or as mixed condiments and mixed seasoning under Chapter 21.

Analysis:
1. The appeals involved a common issue of classifying various products manufactured and cleared by the appellant-assessee. The appellant-assessee produced spice powder and mixed spices, known as Masalas, classified under excise tariff entry 09109100. The Revenue argued for classification as mixed condiments and mixed seasoning under Chapter 21. The Tribunal referred to a previous decision in Eastern Condiments P. Ltd. & Others Vs CCE Madurai, where a similar issue was discussed and decided upon. The original authority had dropped the demand in line with the Tribunal's order and Ministry's acceptance.

2. The Tribunal analyzed the arguments presented by both sides and reviewed the appeal records. It noted that the classification of the goods in question had been previously addressed in the Eastern Condiments case. The Tribunal's decision in that case highlighted the lack of evidence supporting the Revenue's claim that the products lost their essential characteristics of spices after mixing. The Tribunal ultimately classified the goods under excise tariff entry 09109100, setting aside the demand for excise duty and related penalties except for specific items.

3. Based on the precedent set by the Eastern Condiments case and the lack of new legal or factual issues raised by the Revenue, the Tribunal ruled in favor of the appellant-assessee. The Tribunal found the appeals filed by the Revenue to be without merit and dismissed them. The Tribunal also criticized the review authorities for questioning the legality of the Commissioner (Appeals) decision without valid reasons, highlighting a lack of judicial discipline.

4. Ultimately, the Tribunal allowed the appeals filed by the appellant-assessee and dismissed those filed by the Revenue. The decision was based on the established classification of the goods under excise tariff entry 09109100 and the acceptance of the Tribunal's order by the Ministry. The Tribunal emphasized the importance of upholding judicial discipline and adherence to accepted legal principles in reviewing decisions.