2020 (2) TMI 750 - AT - Central Excise

Classification of goods - Nimbooz Masala Soda - whether the product merit classification under Central Excise Tariff heading 2202 1020 as Lemonade as claimed by the department or under Central Excise Tariff heading 2202 9020 as Fruit pulp or Fruit juice based drink, as claimed by the appellant? - HELD THAT - The very same issue has been referred to the Larger Bench and the Larger Bench in the case of 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) including the present appellant's case, the Larger Bench answered the question vide that the 'Nimbooz Masala Soda' is classifiable under Central Excise Tariff heading 2202 90 20 under the category of Fruit pulp or Fruit juice. Issue decided in favor of assessee - appeal allowed - decided in favor of appellant.

Summary

Issues involved: Classification of the product Nimbooz Masala Soda under Central Excise Tariff heading 2202 1020 as Lemonade or under Central Excise Tariff heading 2202 9020 as Fruit pulp or Fruit juice based drink.

Analysis:
The issue in the present appeal revolved around the classification of Nimbooz Masala Soda under specific Central Excise Tariff headings. The appellant claimed the product should be classified under Central Excise Tariff heading 2202 9020 as a Fruit pulp or Fruit juice based drink, while the department argued for classification under heading 2202 1020 as Lemonade. The appellant's counsel referred to a previous decision by the Larger Bench in the case of Brindavan Beverages (P.) Ltd. v. CCE & ST, where it was determined that Nimbooz Masala Soda falls under Central Excise Tariff heading 2202 9020 as Fruit pulp or Fruit juice. The Tribunal acknowledged the decision of the Larger Bench, stating that the issue of classification of Nimbooz Masala Soda was no longer in dispute and had been resolved in favor of the assessee. Consequently, the impugned order was set aside, and the appeal was allowed.

This judgment highlights the importance of precedents set by higher benches in determining the classification of goods under specific tariff headings. The reliance on the decision of the Larger Bench in a similar case provided clarity on the classification of Nimbooz Masala Soda, leading to a favorable outcome for the appellant. The Tribunal's adherence to precedent ensures consistency and uniformity in the interpretation and application of tariff classifications, promoting legal certainty and predictability in indirect tax matters. The ruling underscores the significance of established legal principles and authoritative decisions in resolving disputes related to the classification of goods for excise duty purposes.