1992 (2) TMI 216 - AT - Central Excise

Summary

Issues involved: Classification of the product 'New Sapan Dairy Special' u/s 0401.13 of Chapter 4 of Central Excise Tariff Act, 1985, rejected classification under u/s 0401.90 or alternatively u/s 0404.00.

Summary:
1. The appellants contended that their product, 'New Sapan Dairy Special', was partially skimmed milk powder with additives like vitamins and minerals. They initially classified it u/s 0401.19 for nil duty rate, approved by the Asstt. Collector, but later faced a show cause notice to reclassify it u/s 0401.13, demanding duty payment. They argued that the product did not fit under 0401.13 as it was sweetened and partially skimmed, citing a Punjab & Haryana High Court ruling distinguishing skimmed and partially skimmed milk powder.

2. The Collector (Appeals) upheld the reclassification, stating the product was known and used as skimmed milk powder, ignoring the composition and labeling showing it as partially skimmed. The appellants referenced Indian Standards, Food Adulteration Act, and international standards to support their classification argument, emphasizing the distinction between full cream, partially skimmed, and completely skimmed milk.

3. In the appeal, the appellants argued that the lower authorities erred in not following the Punjab & Haryana High Court ruling, which clearly classified a similar product as partially skimmed milk powder u/s 0401.19. They emphasized the importance of adhering to higher forum rulings without distinction when clear and unambiguous, criticizing the Collector (Appeals) for misinterpreting the precedents.

4. The Tribunal, after considering the submissions and previous rulings, upheld the appellants' argument, setting aside the reclassification and allowing the appeal based on the Punjab & Haryana High Court judgment, which aligned with the product's classification as partially skimmed milk powder u/s 0401.19.