2006 (5) TMI 3 - SC - Central Excise

Central Excise Pan and Chutney/Sauce Both are edible however Pan is not a food and chutney usually taken as an accompaniment with food hence it could be classified under the residuary item

Summary

Issues: Classification of "pan chutney" under Tariff Heading (T.H.) 2103.11 or T.H. 2107.91 of the Central Excise Tariff Act, 1985.

In this judgment, the Supreme Court addressed the dispute regarding the classification of "pan chutney" under Tariff Heading (T.H.) 2103.11 or T.H. 2107.91 of the Central Excise Tariff Act, 1985. The appellant-assessee argued for classification under T.H. 2103.11, which covers "sauces, ketchup and the like and preparations therefor," while the Revenue-respondent contended for classification under T.H. 2107.91, which includes "edible preparations not elsewhere specified or included." The Tribunal had previously upheld the Revenue's contention, leading to a difference of opinion among its Members. The Judicial Member disagreed with the conclusion in a previous case, while the third Member supported the view expressed in that case.

The Supreme Court analyzed the nature of "pan chutney," noting that it is certainly edible and could be classified under the residuary item 2107.91 unless covered by another tariff heading. The Court rejected the Judicial Member's argument that pan chutney was not edible, defining food as "a substance taken into the body to maintain life and growth." Since pan is not considered food, any accompaniment with it would not fall within T.H. 2103.11, which covers items typically accompanying food like sauce or ketchup. The Court emphasized that the use of the term "the like" in T.H. 2103.11 does not extend to items other than food accompaniments, thus supporting the classification of pan chutney under T.H. 2107.91.

Ultimately, the Supreme Court dismissed the appeals, ruling in favor of classifying "pan chutney" under Tariff Heading 2107.91. The judgment concluded with a decision not to award costs in the case.