2002 (12) TMI 121 - AT - Central Excise

Summary

Issues involved:
Classification dispute regarding goods "Yamu" Meetha Gutka, "Yamini" Silver Mint, and "Yamini" Scented Supari under Central Excise Tariff sub-headings 2001.10, 2001.10, and 0801.10 respectively. Challenge against the classification by lower authorities and demand of differential duty without show cause notice.

Detailed Analysis:

1. Classification Dispute:
The appellants claimed classification of Meetha Gutka and Silver Mint under sub-heading 2001.10 based on the high percentage of dates in the products. They argued that the products fell under Chapter 20 as "preparations of fruit." The Counsel emphasized the importance of Section Notes and Chapter Notes in classification and challenged the reliance on market parlance by lower authorities. The Counsel also highlighted the lack of evidence from the Department to support their proposed classification under sub-heading 2107.91.

2. Arguments by the DR:
The DR contended that Meetha Gutka and Silver Mint should be classified as edible preparations under sub-heading 2107.91 based on market recognition. The DR cited previous Tribunal decisions and Supreme Court judgments supporting the application of common parlance tests in similar classification disputes. The DR emphasized the common parlance test and its relevance in determining the classification of goods for human consumption.

3. Examination and Decision:
The Tribunal examined the manufacturing process and composition of Meetha Gutka and Silver Mint, noting the high percentage of dates in both products. The Tribunal compared the case with previous decisions involving similar products manufactured by grinding nuts, which were classified under sub-heading 2107.91. The Tribunal concluded that the subject goods were recognized in the market as edible preparations, falling under the residuary Heading 21.07. The Tribunal upheld the classification of Meetha Gutka and Silver Mint under sub-heading 2107.91, rejecting the appeal by the assessee based on the application of common parlance tests and Chapter Notes.

In summary, the Tribunal resolved the classification dispute by upholding the lower authorities' classification of Meetha Gutka and Silver Mint under sub-heading 2107.91, emphasizing the market recognition and common parlance test in determining the classification of goods for human consumption under the Central Excise Tariff.