2018 (4) TMI 105 - AT - Central Excise

Classification of goods - Minute Maid Nimbu Fresh (MMNF) - whether classified under CETH 22021020 or CETH or 22029020 of Schedule to Central Excise Tariff Act 1985 or otherwise? - Held that - matter referred to Larger Bench to give its opinion on appropriate classification of MMNF whether under Tariff Item No. 22021020 or 22029020 - The matter may be placed before Hon ble President for constitution of Larger Bench.

Summary

Issues: Classification of 'Minute Maid Nimbu Fresh' (MMNF), Interpretation of Tariff Items, Referral to Larger Bench for Opinion

In the present case, two appeals were filed concerning the Classification of MMNF. The appellants were involved in manufacturing MMNF, and the central issue revolved around the correct classification of this product. The Adjudicating Authority had relied on a previous order by the Coordinated Bench, which classified MMNF under Tariff Item No. 22021020. However, the appellants disagreed with this classification and appealed to the Tribunal. The Tribunal, after hearing arguments from both sides, found discrepancies in the method used for classification by the Coordinated Bench. The Tribunal noted that the comparison between Tariff Item No. 22029020 and 22021020 was incorrect as they fell under different groups. The Tribunal highlighted that Lemon Juice Based Drinks, such as MMNF, should fall under Tariff Item No. 22029020 for Fruit Pulp or Fruit Juice Based Drinks, considering lemons as fruits. Consequently, the Tribunal disagreed with the Coordinated Bench's decision and decided to refer the matter to a Larger Bench for an opinion on the appropriate classification of MMNF, specifically under Tariff Item No. 22021020 or 22029020. The issue of limitation was also raised but not addressed at that stage, leaving it for further consideration by the Larger Bench. The Tribunal directed the matter to be placed before the Honorable President for the constitution of a Larger Bench to resolve the classification issue effectively.