2002 (8) TMI 207 - AT - Central Excise

Summary

Issues:
Classification of non-alcoholic beverages bases or concentrates under Chapter sub-heading 2108.10 or Chapter sub-heading 3302.00.

Analysis:
1. The appeal was filed by the Revenue against the order passed by the Commissioner (Appeals) regarding the classification of non-alcoholic beverages bases or concentrates. The Tribunal noted that the CEGAT in a previous case had upheld the classification under Heading 33.02, which is for goods used in the food and beverage industry, rather than under Heading 21.08. The Tribunal also mentioned that the Assistant Commissioner's classification (3302.01) was upheld.

2. The issue revolved around whether non-alcoholic beverages bases or concentrates should be classified under Chapter sub-heading 2108.10 as per the Central Excise Department or under Chapter sub-heading 3302.00 as claimed by the assessee. The Revenue contended that the goods should be classified under 2108.10, arguing that they are edible preparations specified for use in the manufacture of aerated water, and not under 3302.10, which mostly covers items like cosmetics and odoriferous substances for giving a pleasant smell in beverages.

3. The Revenue's representative argued that the goods in question are not appropriately covered under Chapter sub-heading 3302.10, as they are not odoriferous substances but edible preparations. The Tribunal noted that the Assistant Commissioner initially classified the goods under 3302.00, a decision upheld by the Commissioner (Appeals) as well. The Tribunal considered the arguments presented by the Revenue but ultimately relied on the previous decision in the case of Britco Foods Company Ltd., where similar goods were classified under Chapter Heading 3302.

4. The Tribunal highlighted the decision in the case of Britco Foods Company Ltd., where it was held that the goods in question, being non-alcoholic beverages bases or concentrates, should be classified under Chapter sub-heading 3302.00. The Tribunal rejected the Revenue's appeal based on the findings of the earlier case, emphasizing that the products fell under the category of goods used in the food and beverage industry, as per the tariff heading.

5. In conclusion, the Tribunal upheld the classification of non-alcoholic beverages bases or concentrates under Chapter sub-heading 3302.00, based on the precedent set in the case of Britco Foods Company Ltd. The Revenue's appeal was dismissed, affirming the classification determined by the Assistant Commissioner and the Commissioner (Appeals).