2001 (9) TMI 132 - AT - Central Excise

Summary

Issues: Classification of "Roasted Peanuts" and "Moongfali Masala Majedar" under the Central Excise Tariff Act and consequential demand of duty of excise.

In the judgment by the Appellate Tribunal CEGAT, the issue revolved around the classification of "Roasted Peanuts" and "Moongfali Masala Majedar" under the Central Excise Tariff Act and the duty implications. The Appellants argued that these products should be classified under Heading 21.08 as Namkeens and be exempted from duty under Notification No. 4/97. They contended that Roasted Peanuts are covered under Chapter 8 and should not fall under Chapter 20, which applies to preparations of fruits, nuts, and plants. On the other hand, the Revenue argued that Roasted Peanuts and Moongfali Masala Majedar are preparations of nuts falling under Chapter 20. The Appellate Tribunal analyzed the process of preparation, noting that Roasted Peanuts are obtained through roasting, which qualifies as a preparation of nuts under Chapter 20. They also found that Moongfali Masala Majedar, with added gram flour, remains a preparation of nuts under Chapter 20. The Tribunal held that the extended period of limitation was applicable due to the Appellants' failure to disclose the manufacture of these products to the Department. While the Appellants were granted a reduction in penalty, they were liable to pay the duty amount after recomputation, along with penalties under Section 11AC and Rule 209A. The judgment concluded by upholding the classification of both products under Chapter 20 and imposing duty and penalties accordingly.