2008 (2) TMI 144 - AT - Customs

Classification of imported products viz. Aloe vera Gel, Aloeberry Nectar & Forever Freedom - whether under CTH 200980 for Aloe vera Gel & 200990 for other two products as contended by importer OR under CTH 2202.90 as contended by Revenue classification of products u/h 2202 solely on basis of WCC Advisory opinion is not justified in view of Explanatory note of HSN u/h 20.09, products have rightly been classified as Vegetable juices under CTH 2009.80/2009.90 revenue appeal rejected

Summary

Issues: Classification of Aloe vera Gel, Aloeberry Nectar, and Forever Freedom under CTH 200980 or CTH 200990 vs. CTH 2202.90

Analysis:
1. The issue revolved around the classification of imported products - Aloe vera Gel, Aloeberry Nectar, and Forever Freedom. The Revenue contended that they should be classified under CTH 2202.90 based on a WCO advisory opinion. However, the Commissioner(Appeals) accepted the importers' argument that the goods should be classified under CTH 2009.80/2009.90 as fruit and vegetable juices. The Tribunal noted that the products were vegetable juices and not compounds, hence should be classified under CTH 2009.80/2009.90.

2. The Tribunal emphasized that the products were vegetable juices consisting of Aloe Vera sap/juice and small quantities of other fruit juices. It was clarified that the products were not compounded with chemicals like tartaric acid, and were not intended to be diluted with water/alcohol for beverage use. The Tribunal rejected the notion that the products were food supplements, as they did not meet the criteria of being protein, fat, or carbohydrate-based supplements.

3. The Tribunal further discussed the definitions of vegetable juice and food supplements, emphasizing that the products did not qualify as supplements and were correctly classified as vegetable juices. The Tribunal also refuted the argument that the products fell under Heading 2106 for food preparations, stating that they were not marketed as food supplements and did not meet the criteria for such classification.

4. The Tribunal did not delve into the classification under CTH 2209.90 as the main consideration was between CTH 2009 and 2106. It was established that the products fell under CTH 2009 as fruit and vegetable juices, excluding them from CTH 2202 which covers non-alcoholic beverages.

5. The Tribunal highlighted that the WCO advisory opinion was not implemented and did not consider Heading 20.09, making it irrelevant for the classification of the products. Circulars issued by CBEC for implementing WCO decisions were cited to emphasize the importance of official implementation. The Tribunal also clarified that a previous order in the assessee's case under Heading 21.06 was not applicable to the current case under different headings.

6. In conclusion, the Tribunal upheld the classification of the products as vegetable juices under CTH 2009.80/2009.90, rejecting the Revenue's appeal and affirming the Commissioner(Appeals) decision.