2024 (10) TMI 976 - AT - Central Excise

Non-payment of duty - Classification of goods - Minute Maid Nimbu Fresh - to be classified under the tariff item 22029020 as Fruit pulp or fruit juice based drink or under tariff item 22029020 as Lemonade. ? - HELD THAT - The issue in the present appeal is no more res integra and is squarely covered by the decision of the Larger Bench of the Tribunal in the case of Brindavan Beverages Pvt. Ltd. Others vs. CCE ST, Hapur 2019 (10) TMI 762 - CESTAT ALLAHABAD (LB) whereby it was held that the product MMNF is classifiable under Tariffs Sub-heading 22029020 as fruit pulp or fruit juice-based drink . There are no infirmity in the impugned order and accordingly the same is sustained - the appeal filed by the Revenue is dismissed.

Summary

Issues:
Classification of the product "Minute Maid Nimbu Fresh" under tariff item 22029020 as "Fruit pulp or fruit juice-based drink" or under tariff item 22021020 as "Lemonade."

Analysis:
The appeal was filed by the Revenue challenging the Order-in-Appeal passed by the Commissioner (Appeals) in favor of the Assessee. The Respondent, engaged in manufacturing beverages, classified the product "Minute Maid Nimbu Fresh" under tariff item 22029020. The Department, however, argued for classification under tariff item 22021020 as "Lemonade."

The Tribunal considered the issue and referenced the decision of the Larger Bench in the case of Brindavan Beverages Pvt. Ltd. & Others vs. CCE & ST, Hapur, where it was held that "Minute Maid Nimbu Fresh" falls under tariff item 22029020 as a "fruit pulp or fruit juice-based drink." The Department did not challenge this decision, and previous orders also supported this classification.

The Tribunal highlighted that the product's fruit juice content and total soluble solids meet the criteria for classification under tariff item 22029020. It was emphasized that even when lemon juice is added, if the fruit content is not less than 5%, the product is considered a fruit juice-based drink. This interpretation was consistent with regulations regarding fruit beverages.

The Tribunal noted that the decision of the Larger Bench had been followed in various other cases, confirming the classification of similar products under tariff item 22029020. Consequently, the Tribunal found no fault in the Commissioner (Appeals) decision and dismissed the Revenue's appeal.

In conclusion, the Tribunal upheld the classification of "Minute Maid Nimbu Fresh" under tariff item 22029020 as a "fruit pulp or fruit juice-based drink," in line with the decision of the Larger Bench and previous rulings. The appeal by the Revenue was dismissed, affirming the Commissioner (Appeals) decision.