2024 (6) TMI 1177 - AT - Central Excise

Classification of goods - aerated drinks and fruit pulp or fruit juice based drinks under different brand names - to be classified under Tariff Heading 2202 9020 or under Chapter Sub-heading 22021020 - period April 2011 to August 2012 - HELD THAT - The issue of classification of the impugned product is no more res integra as the same issue has been settled in favour of the Appellant in Appellant s own case M/S. HINDUSTAN COCA-COLA BEVERAGES P LTD VERSUS COMMISSIONER OF CGST, BHIWANDI 2022 (11) TMI 595 - CESTAT MUMBAI . The order relied on the decision by a Larger Bench of this Tribunal in M/S BRINDAVAN BEVERAGES PRIVATE LIMITED, KRANTI KUMAR CHANDRAKAR, M/S PEPSICO INDIA HOLDINGS PRIVATE LIMITED VERSUS COMMISSIONER CUSTOMS, CENTRAL EXCISE AND SERVICE TAX, HAPUR AND BAREILLY 2019 (10) TMI 762 - CESTAT ALLAHABAD (LB) which held that the product Minute Maid Nimbu Fresh is classifiable under Tariff Item 2202 90 20 of the Central Excise Tariff Schedule under the category of fruit pulp or fruit juice based drinks . The Larger Bench did not agree with the decision in the matter of HINDUSTAN COCA COLA BEVERAGES PVT LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, THANE-I 2014 (9) TMI 659 - CESTAT MUMBAI , on which reliance has been placed in the impugned order by the Commissioner (Appeals). The Larger Bench held ' The product Minute Maid Nimbu Fresh (hereinafter referred to as MMNF) manufactured by Brindavan Beverages Private Limited, and 7UP Nimbooz Masala Soda or 7UP Nimbooz manufactured by PepsiCo India Holdings Private Limited are classifiable under Tariff Item 2202 90 20 of the Central Excise Tariff Schedule under the category of fruit pulp or fruit juice based drink'. The appeal filed by the Appellant is allowed.

Issues: Classification of the product "Minute Maid Nimbu Fresh" under Central Excise Tariff Act, 1985.

Detailed Analysis:
1. Background: The Appellant, engaged in manufacturing aerated drinks, faced a Show Cause Notice (SCN) alleging misclassification of the product "Minute Maid Nimbu Fresh" under Chapter Sub-heading 22029020 instead of 22021020.

2. Order-in-Original: The Additional Commissioner confirmed duty demand, penalty, and interest, leading to a dispute over the correct classification of the product.

3. Appeal before Commissioner (Appeals): The main issue revolved around the classification of the product as "Lemonade" or "Fruit pulp or Fruit juice-based drinks," with the Commissioner upholding the duty demand but reducing the penalty.

4. Tribunal's Decision: The Tribunal noted that the issue of classification had been settled in favor of the Appellant in previous orders and a Larger Bench decision, emphasizing that the product falls under Tariff Item 2202 90 20 as a "fruit pulp or fruit juice based drink."

5. Larger Bench Decision: The Larger Bench emphasized that products like "Minute Maid Nimbu Fresh" with specified fruit juice content are classified as fruit juice-based drinks, contrary to the Commissioner (Appeals) reliance on a previous case.

6. Consequential Relief: Following the precedent set by the Larger Bench, the Tribunal allowed the appeal, providing relief to the Appellant and settling the classification issue in their favor.

7. Precedents: The Tribunal's decision aligned with similar cases like M/s Varun Beverages Pvt. Ltd., M/s Aradhana Foods and Juices Pvt. Ltd., and M/s. Pepsico India Holdings Pvt. Ltd., reinforcing the classification of such products under Tariff Item 2202 90 20.

In conclusion, the judgment resolved the classification issue of "Minute Maid Nimbu Fresh" by aligning with the precedent set by the Larger Bench, providing relief to the Appellant and settling the dispute in their favor.

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