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Issues: Classification of imported goods under Customs Tariff Headings 1901.90 and 2106.90, and additional duty classification under CETH 2108.99.
In this judgment by the Appellate Tribunal CESTAT, Mumbai, the issue revolves around the classification of imported 'Supro Plus LF IP Non GM (Nutritious Beverage Powder)' under the Customs Tariff Headings (CTH) 1901.90 and 2106.90. The respondents claimed classification under CTH 1901.90, while the Original Authority classified the goods under CTH 2106.90, charging different rates of basic customs duty and additional duty of customs. The Lower Appellate Authority allowed the appeal of the respondents, leading to the appeal by Revenue. The Revenue argued that the impugned goods, a combination of Supro and other nutrients, should not be classified under CTH 1901 as it covers only basic preparations, but under CTH 2106.90 for other food preparations. The respondents provided details of the manufacturing process involving defatted soybean flakes, protein extraction, and addition of nutrients to create the final product, Supro Plus LF Nutritious Beverage Powder. The Tribunal analyzed the Customs Tariff Headings 19.01 and 21.06 to determine the correct classification. It noted that the impugned goods were not basic preparations of flour or meal but involved complex processing, making them suitable for classification under CTH 2106.10 for protein concentrates and textured protein substances, or CTH 2106.90 for other food preparations. The Explanatory Notes under Heading 21.06 were considered, highlighting the inclusion of preparations for human consumption, which aligned with the nature of the impugned goods. The Tribunal examined arguments from both sides, previous decisions, and the Harmonized Systems Nomenclature to conclude that the impugned goods should be classified under CTH 2106.90 and Central Excise Tariff Heading (CETH) 2108.99. This decision was supported by Chapter Note 9(b) to Chapter 21 of the Central Excise Tariff, emphasizing preparations for human consumption. Consequently, the impugned order-in-appeal was set aside, and the order-in-original was restored. Overall, the judgment clarifies the classification criteria for imported food preparations, emphasizing the complexity of processing and intended use for human consumption in determining the appropriate Customs Tariff Headings and additional duty classification.
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