1994 (4) TMI 134 - AT - Central Excise

Issues Involved:
1. Classification of the product "instant coffee chicory blend" under the Central Excise Tariff Act, 1985.

Detailed Analysis:

Issue 1: Classification of the Product "Instant Coffee Chicory Blend"

The primary dispute is the classification of the product "instant coffee chicory blend" under the Central Excise Tariff Act, 1985. The appellants claimed classification under sub-heading 0901.20, while the Department argued for sub-heading 2101.10. Alternatively, the appellants suggested sub-heading 2101.30 or Heading 21.07.

Appellants' Argument:
The appellants contended that sub-heading 2101.10 is inapplicable as the product is an extract of a coffee chicory mixture, not pure coffee. They argued for classification under sub-heading 0901.20, which covers "coffee substitutes containing coffee in any proportion," or alternatively under sub-heading 2101.30 or Heading 21.07, which pertains to "edible preparations, not elsewhere specified or included."

Relevant Tariff Entries:
- 09.01: Coffee, whether or not cured or roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion.
- 0901.20: Coffee substitutes containing coffee in any proportion.
- 21.01: Extracts, essences, and concentrates of coffee or tea and preparations with a basis of these products or with a basis of coffee or tea, roasted chicory, and other roasted coffee substitutes, and extracts, essences, and concentrates thereof.
- 2101.10: Extracts, essences, and concentrates of coffee and preparations with a basis of these extracts, essences, or concentrates or with a basis of coffee.
- 2101.30: Roasted chicory and other roasted coffee substitutes, and extracts, essences, and concentrates thereof.
- 21.07: Edible preparations, not elsewhere specified or included.

Appellants' Detailed Arguments:
The appellants emphasized that the product is a modified coffee blend, not an extract of pure coffee, and should not be classified under sub-heading 2101.10. They referred to various sources, including the KIRK-OTHMER Encyclopaedia of Chemical Technology and the Food Adulteration Act, to support their claim that instant coffee chicory blend is distinct from pure coffee. They also cited the case of Brooke Bond India Ltd. v. Union of India, which held that a coffee chicory mixture is a distinct commercial commodity.

Department's Counter-Argument:
The Department argued that Chapter 9 covers only powder of green coffee seeds, and any extraction of liquor from roasted and ground seeds moves the product to Chapter 21. They contended that the product is not a coffee substitute but a coffee chicory mixture, which should be classified under sub-heading 2101.10. They pointed out that the powder is not directly derived from coffee seeds but through a complex process involving extraction and drying.

Tribunal's Analysis:
The Tribunal considered the manufacturing process, which involves blending coffee beans with roasted chicory cubes, extracting liquor, and drying it into powder form, known as instant coffee chicory blend. They concluded that the mixture cannot be classified as "coffee" under Chapter 9, as it is a distinct commercial commodity known as French Coffee or instant soluble coffee chicory blend.

The Tribunal agreed with the Department that the product is not a coffee substitute and thus cannot be classified under sub-heading 0901.20. They noted that sub-heading 2101.10 applies to preparations with a basis of coffee or its extracts, while sub-heading 2101.30 applies to roasted chicory and other roasted coffee substitutes.

Since the product is a mixture prepared from coffee-chicory powder and fits the description of preparations with a basis of coffee extract, the Tribunal upheld the Department's classification under sub-heading 2101.10.

Conclusion:
The Tribunal dismissed the appeals and upheld the classification of "instant coffee chicory blend" under sub-heading 2101.10 of the Central Excise Tariff Act, 1985.

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