2018 (4) TMI 758 - AT - Central Excise

Classification of goods - Cadburys Tiffins - whether classified under Chapter heading 1905.11 or under chapter sub heading 1905.31? - Held that - The facts are undisputed that the Appellant brought biscuit from the market and coated the same with the chocolate. After process it remained biscuit only albeit covered with chocolate - The CSH 1905.11 covers the goods in relation to manufacture of which any process is ordinarily carried on with the aid of power whereas 1905.31 covers the Wafles and Wafers coated with chocolate or containing chocolate. There is no reason to classify the impugned goods under chapter sub heading 1905.31 - the appellants product chocolate clubs would be properly classifiable under Heading 1905.90. Appeal allowed - decided in favor of appellant.

Summary

Issues involved:
Classification of product Cadburys 'Tiffins' under Chapter heading 1905.11 or 1905.31.

Analysis:
1. The issue in this appeal revolves around the classification of the product Cadburys 'Tiffins'. The Appellant purchased biscuits from a supplier and covered them with chocolate. The revenue issued a show cause notice proposing classification under chapter 1905.31, leading to a demand for duty. The adjudicating authority initially classified the goods under 1905.11, dropping the demand. However, on appeal by the revenue, the goods were reclassified under 1905.31, and the demand was confirmed.

2. The Appellant argued that the products - waffles, wafers, and biscuits - are distinct from each other in physical characteristics, appearance, and manufacturing process. An expert's affidavit highlighted these differences. The Appellant contended that the goods in question were chocolate-coated biscuits and not waffles or wafers. They relied on precedents like Munch Food Products Ltd. and Nestle India Ltd. to support their classification argument.

3. The revenue supported the impugned order's findings that all products - waffles, wafers, and biscuits - were the same and should be classified under 1905.31. They cited various orders to support their stance.

4. The Tribunal analyzed the facts and submissions, concluding that the goods were biscuits coated with chocolate, falling under 1905.11. They referenced precedents like Nestle (India) Ltd. v. CCE and Little Star Foods Pvt. Ltd. v. CCE to support their classification decision. The Tribunal set aside the impugned order and allowed the appeal, classifying the goods under 1905.11. The cross-objection was also disposed of accordingly. The judgment was pronounced on 21/03/2018.