2019 (11) TMI 1054 - AT - Central Excise

Classification of goods - flavoured milk - whether classified under CETA 22029030 of CETA or to be classified under 04049000? - M.R.P basis assessment in terms of N/N. 49/2008-CE (NT) dt. 24.12.2008 as amended by N/N. 11/2011-CE (NT) dt. 24.03.2011 read with Rule 8 of CCR 2002 - HELD THAT - The Co-ordinate Bench of the Tribunal has already decided the issue in favour of the appellants. The Tribunal in the case of NESTLE INDIA LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE (LTU) , DELHI 2017 (3) TMI 1636 - CESTAT NEW DELHI where it was held that the appropriate classification for the impugned product will be under Chapter Tariff Item 0404 90 00 of the Central Excise Tariff Act, 1985. Thus, the impugned goods are classifiable under Heading 0404 of CETA - appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of goods under Central Excise Tariff Act, 1985

Issue 1: Classification of goods
The case involved the classification of goods manufactured by M/s. Cavin Care Pvt. Ltd., specifically flavoured milk, under the Central Excise Tariff Act, 1985. The appellants initially classified the goods under CETA 22029030 but later changed the classification to 04049000. The department contended that the goods should be classified under 220290 and charged duty under M.R.P basis assessment as per relevant notifications and rules. The SCNs issued to the appellants were confirmed through OIO No.06/2015 and OIA No.33/2017.

Analysis:
The issue revolved around whether the flavoured milk should be classified under Chapter 12 as per the department's contention or under Chapter 22 as argued by the appellants. The Tribunal referred to relevant HSN Notes to Tariff Headings 0404 and 1901 to determine the classification. It was observed that the addition of artificial flavouring substance did not change the essential nature of the product from what is covered under 0404. The Tribunal cited previous decisions to support this view, emphasizing that the addition of a small quantity of flavouring substance did not warrant a shift in classification from 0404 to 1901. Therefore, the Tribunal concluded that the impugned product should be classified under Chapter Tariff Item 0404 90 00 of the Central Excise Tariff Act, 1985, in line with the appellant's contention.

Decision:
Based on the findings and analysis, the Tribunal allowed both appeals, setting aside the impugned order and determining the appropriate classification of the goods under Heading 0404 of CETA.

This detailed analysis of the judgment highlights the key arguments, legal interpretations, and decisions made by the Tribunal regarding the classification of the goods under the Central Excise Tariff Act, 1985.