2020 (2) TMI 288 - AT - Central Excise

Classification of goods - Nimbooz - fruit pulp or fruit juice based drink - packaged nimbu pani - whether classifiable under Chapter Sub-heading No. 2202 9020 of Central Excise Tariff Act, 1985 or under 2202 1020 of CETA - benefit of exemption under Sl. No. 24 of Notification No. 1/2011-CE dated 01.03.2011 - HELD THAT - An identical issue has been decided by the Hon ble Larger Bench in M/S BRINDAVAN BEVERAGES PRIVATE LIMITED, KRANTI KUMAR CHANDRAKAR, M/S PEPSICO INDIA HOLDINGS PRIVATE LIMITED VERSUS COMMISSIONER CUSTOMS, CENTRAL EXCISE AND SERVICE TAX, HAPUR AND BAREILLY 2019 (10) TMI 762 - CESTAT ALLAHABAD (LB) and in view thereof, the classification declared by the appellant under the Chapter sub-heading 2202 9020 is held to be correct and hence the Revenue is not justified in reclassifying Nimbooz as Lemonade under Chapter sub-Heading 2202 1020 . Appeal allowed - decided in favor of appellant.

Summary

Issues:
Classification of aerated water and beverages under Central Excise Tariff Act, 1985 - Whether goods classified correctly under Chapter Sub-heading No. 2202 9020 - Dispute regarding classification as 'Nimbooz' or 'Lemonade' - Applicability of Notification No. 1/2011-CE dated 01.03.2011 - Admissibility of full exemption under Sl. No. 24.

Analysis:
The appellant, engaged in the manufacture of aerated water and beverages under the brand "Nimbooz," classified the goods under Chapter Sub-heading No. 2202 9020 of the Central Excise Tariff Act, 1985, claiming full exemption under Sl. No. 24 of Notification No. 1/2011-CE dated 01.03.2011. The Revenue raised doubts on the classification, asserting that "Nimbooz" could be classified as 'Lemonade' under Chapter sub-Heading 2202 1020. A Show Cause Notice was issued proposing reclassification and demanding duty for the period 01.03.2009 to 31.03.2013. The Commissioner of Central Excise reclassified "Nimbooz" as 'Lemonade' under Chapter sub-Heading 2202 1020, leading to the appellant's appeal against the decision.

The appellant contended that the issue of classification had been previously settled by the Hon'ble Larger Bench of the Tribunal in the appellant's own case. Referring to the Tribunal's decision and the Supreme Court's ruling in a related case, it was argued that products like "Nimbooz" fell under Tariff Item No. 2202 9020 as fruit juice based drinks. The Tribunal concluded that the classification declared by the appellant under Chapter sub-heading 2202 9020 was correct, as per the Larger Bench's decision. Therefore, the Revenue's attempt to reclassify "Nimbooz" as 'Lemonade' was deemed unjustified, leading to the setting aside of the impugned order.

In conclusion, the appeal was allowed with consequential benefits, if any, as per the law. The operative part of the order was pronounced in open Court on 10.12.2019.