2004 (9) TMI 264 - AT - Central Excise

Summary

Issues: Classification of products "Badam Summer Sip" and "Thandai" under sub-heading No. 2001.10 or 2108.20 of the Central Excise Tariff Act.

Analysis:
1. Manufacturing Process: The products are made by soaking almonds and a mixture of plant parts, grinding them, cooking with sugar syrup, and adding flavors like rose water and saffron. The process is similar for both products, with the only difference being the absence of certain ingredients in "Badam Summer Sip."

2. Revenue's Argument: Revenue argues that the products should be classified as "Sharbats" under sub-heading 2108.20 based on the percentage of sugar and water content, as per Note 6 to Chapter 21. They contend that the products meet the criteria of Sharbat and reference a previous decision regarding a similar product classification.

3. Respondent's Argument: The respondents argue that the products are preparations of nuts, specifically almonds, and should be classified under Heading 20.01 of the Tariff. They emphasize that Sharbat is essentially a sugar syrup with added flavors, contrasting it with the nutritional value of almond-based products.

4. Judgment: The Tribunal analyzed the Tariff Headings and manufacturing processes. Heading 20.01 covers preparations of nuts, including those with added sugar, which aligns with the products in question. The Tribunal referenced a previous case to support this classification and highlighted that Sharbat falls under a different category. The Tribunal dismissed Revenue's arguments based on the classification criteria and lack of evidence linking the products to the previous case cited.

In conclusion, the Tribunal rejected Revenue's appeal and upheld the classification of "Badam Summer Sip" and "Thandai" under sub-heading No. 2001.10 of the Central Excise Tariff Act, based on them being preparations of nuts with added sugar.