2019 (7) TMI 2053 - AT - Central Excise

Classification of certain beverages manufactured by the appellants - Minute Made Nimbu Fresh - Numbooz Masala Soda - Nimbooz - classifiable under Central Excise Tariff Item No.22021020 or 22029020 of the Schedule to Central Excise Tariff Act 1985? - HELD THAT - The Larger Bench decided the issue by Order dated 30 April 2019 2019 (10) TMI 762 - CESTAT ALLAHABAD (LB) . It held that the beverages such as Minute Made Nimbu Fresh 7up Nimbooz Masala Soda and 7up Nimbooz manufactured by the appellant manufacturers were classifiable under Tariff Item No.22029020 of Schedule to the Central Excise Tariff Act 1985 which is for category of Fruit Pulp or Fruit Juice Based Drinks . In view of the conclusions given by the Larger Bench it has to be held that the demands raised in all the above stated appeals confirmed by Original Authority holding the said beverages to be falling under Tariff Item No.22021020 are not sustainable. Conclusion - The beverages such as Minute Made Nimbu Fresh 7up Nimbooz Masala Soda and 7up Nimbooz manufactured by the appellant manufacturers were classifiable under Tariff Item No.22029020 of Schedule to the Central Excise Tariff Act 1985 which is for category of Fruit Pulp or Fruit Juice Based Drinks . The impugned order set aside - appeal allowed.

Summary

The judgment from the Appellate Tribunal CESTAT Allahabad, presided over by Hon'ble Mr. Justice Dilip Gupta and Hon'ble Mr. Anil G. Shakkarwar, addresses four Excise Appeals concerning the classification of certain beverages manufactured by the appellants, including M/s Brindavan Beverages Pvt. Ltd. and Pepsico India Holdings Pvt. Ltd. The central issue was whether these beverages, such as "Minute Made Nimbu Fresh" and "Nimbooz Masala Soda," should be classified under Central Excise Tariff Item No. 22021020 (lemonades) or 22029020 (fruit pulp or fruit juice-based drinks).

The Tribunal had previously ruled in favor of the Revenue, classifying the beverages under Tariff Item No. 22021020. However, upon referral to the Larger Bench, it was determined on April 30, 2019, that the beverages should be classified under Tariff Item No. 22029020. Consequently, the demands raised by the Original Authority, which classified the beverages under the incorrect tariff item, were deemed unsustainable.

The Tribunal allowed all appeals, setting aside the impugned orders, except for the cenvat credit of Rs.1,16,099/- already paid by M/s Brindavan Beverages Pvt. Ltd., which was not interfered with. The appeals were allowed to the extent indicated, with the judgment dictated and pronounced in open court.