2004 (11) TMI 270 - AT - Central Excise

Summary

Issues: Classification of food products under Central Excise Tariff Act

Analysis:
The appellant challenged the order classifying certain food items under Heading 2108.99 of the Central Excise Tariff Act, contending that they should be classified under Heading 2001.10. The appellant argued that the goods were prepared from parts of plants without using preservatives, thus falling under Chapter 20 of the Tariff. They relied on HSN explanatory notes and Chapter 7 to support their classification claim.

The Revenue, on the other hand, argued that the products in question, made from Rajmah, Lobia, Kabli Channa, Black Channa, and Mah Ki Dal, should not be considered as vegetables and therefore should not fall under Chapter 20. They cited a previous Tribunal decision in a similar case to support their position.

The Tribunal noted that there was no dispute regarding the manufacturing process of the products and referred to the HSN explanatory notes to interpret the classification. They found that Chapter 20 covers products prepared or preserved differently from Chapter 7, which includes peas, beans, and lentils. The Tribunal differentiated the products in question from samber mix and rasam mix, emphasizing the importance of HSN explanatory notes in classification. Citing a Supreme Court decision, the Tribunal agreed with the appellant's arguments, set aside the impugned order, and allowed the appeal.

In conclusion, the Tribunal's decision focused on the interpretation of the Central Excise Tariff Act, relying on HSN explanatory notes and previous case law to classify the food products in question under Heading 2001.10 instead of Heading 2108.99. The judgment underscored the significance of accurate classification based on the nature and preparation of the goods, as guided by relevant legal provisions and explanatory notes.