1986 (7) TMI 244 - AT - Central Excise

Summary

Issues:
1. Classification of dehydrated garlic under Tariff Item 1B of Central Excise Tariff.
2. Validity of show cause notice issued by Central Government.
3. Interpretation of the term "vegetable" in relation to dehydrated garlic.

Analysis:
1. The appeal involved the classification of dehydrated garlic in flakes and powder form packed in polythene packets under Tariff Item 1B of the Central Excise Tariff, specifically relating to "prepared and preserved food." The Superintendent of Central Excise initially did not classify it as food, but the Collector of Central Excise (Appeals) disagreed, citing that garlic is a vegetable and used for edible purposes, thus eligible for exemption under Notification No. 17/70. The Central Government issued a show cause notice challenging this classification.

2. The validity of the show cause notice was questioned by the respondent's advocate on two grounds. Firstly, it was argued that the notice was issued beyond the six-month period from the order-in-appeal, relying on a Delhi High Court judgment and a Tribunal decision. Secondly, the notice was deemed vague as it did not provide clear reasons why dehydrated garlic should not be considered as prepared or preserved food. The advocate cited previous judgments to support the argument for setting aside the notice due to vagueness.

3. The interpretation of the term "vegetable" in relation to dehydrated garlic was a crucial point of contention. The respondent's advocate relied on the Supreme Court's judgment and a High Court ruling, asserting that garlic should be considered a vegetable based on common parlance and everyday use. The advocate argued that dehydrated garlic falls under the category of dehydrated vegetables exempted from excise duty, as held by the Collector of Central Excise (Appeals) in a previous decision. The Tribunal ultimately confirmed the classification of dehydrated garlic as a vegetable and dismissed the appeal based on this substantive point.

4. Judge G. Sankaran, concurring with the conclusion, emphasized that an article need not be the principal ingredient of food to qualify as "food." Drawing parallels with mint and coriander used for flavoring, he highlighted that garlic, though used for taste enhancement, is commonly accepted as a vegetable and an item of food. Therefore, the appeal was deemed unsuccessful based on this interpretation, affirming the classification of dehydrated garlic as food under Tariff Item 1B.

This comprehensive analysis covers the classification issue, validity of the show cause notice, and the interpretation of "vegetable" in the context of dehydrated garlic, as addressed in the legal judgment.