2009 (6) TMI 299 - AT - Central Excise

Packaged drinking water - Revenue states that the respondents are indicating on the label of the sample which has been produced before us that the packaged drinking water is marketed by Mother Dairy Calcutta. Therefore the impugned goods have to be considered as branded goods bearing the brand name of Mother Dairy Calcutta. Consequently according to department the impugned goods should be classified under Sub-Heading 2201.19. - Nowhere on the label the logo of Mother Dairy is printed nor anywhere there is indication that the product of Mother Dairy is being manufactured by the respondents under franchise from Mother Dairy or otherwise. - Lower appellate authority has come to the finding that the respondents who manufacture packaged drinking water did not use the brand name of Mother Dairy and therefore their product is classifiable under Sub-Heading 2201.11 attracting nil rate of duty. - The lower appellate authority s order requires no interference. The Department s appeal is rejected.

Issues: Classification of packaged drinking water under Sub-Heading 2201.11 or 2201.19 based on the brand name 'Mother Dairy'.

In this case, the main issue is whether the packaged drinking water, marketed with a label indicating 'Mother Dairy, Calcutta', should be classified under Sub-Heading 2201.11 (nil rate of duty) or 2201.19 based on the presence of the brand name. The Revenue argues that the goods should be classified under 2201.19 due to the indication of 'Mother Dairy' on the label, citing Supreme Court decisions. On the other hand, the lower appellate authority and the respondents contend that the goods do not use the brand name of 'Mother Dairy', relying on Tribunal decisions. The Tribunal examines the label, which shows the product is marketed by 'Mother Dairy, Calcutta', without the logo or indication of manufacturing by 'Mother Dairy'. The Tribunal refers to a similar case where relief was allowed based on a label indicating marketing by 'Mother Dairy', emphasizing that the brand name is not being used. The Tribunal distinguishes the present case from the Supreme Court decisions cited by the Revenue, highlighting that the goods are not manufactured under the brand name 'Mother Dairy', but only marketed by them. Following the precedent set in the earlier Tribunal decision, the Tribunal rejects the Revenue's appeal, concluding that the impugned goods do not use the brand name 'Mother Dairy' and upholds the lower appellate authority's decision.

The judgment provides a detailed analysis of the classification of packaged drinking water based on the presence of the brand name 'Mother Dairy'. It delves into the interpretation of the label indicating marketing by 'Mother Dairy, Calcutta' and distinguishes between using a brand name and merely marketing a product under a specific entity. The Tribunal extensively references earlier decisions, both Tribunal and Supreme Court, to establish the legal principles governing the classification of goods based on branding. The judgment emphasizes the importance of the specific wording on the label and the absence of indications linking the manufacturing to the brand name in question. By analyzing the previous rulings and the nature of the present case, the Tribunal concludes that the impugned goods do not utilize the brand name 'Mother Dairy' and, therefore, should be classified under Sub-Heading 2201.11, attracting a nil rate of duty.

Overall, the judgment meticulously examines the arguments presented by both parties, scrutinizes the label of the packaged drinking water, and applies legal precedents to determine the correct classification under the Customs Tariff Act. The Tribunal's decision is based on a thorough analysis of the facts, the wording on the label, and the absence of explicit branding linking the goods to 'Mother Dairy'. By relying on established legal principles and earlier decisions, the Tribunal provides a comprehensive rationale for rejecting the Revenue's appeal and affirming the lower appellate authority's classification of the goods under Sub-Heading 2201.11.

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