1996 (9) TMI 256 - AT - Central Excise

Summary

Issues:
Correct classification of the product "Sweet corn cream style" under sub-heading 1904.90 or 2107.91.

Analysis:
The appeal before the Appellate Tribunal CEGAT, New Delhi involved the classification of the product "Sweet corn cream style" under the Central Excise Tariff Act, 1985. The dispute arose between the Revenue, contending for classification under sub-heading 2107.91, and the Collector (Appeals), confirming classification under sub-heading 1904.90. The process of manufacture involved receiving corn cobs, separating kernels, cooking with added ingredients like starch, salt, and sugar, and packaging in cans for sale. The Assistant Collector classified the item under Heading 2107.91 as an edible preparation, excluding it from Heading 19.04, which covers pre-cooked or prepared corn in grain form. However, the lower Appellate authority disagreed, considering the product a prepared food of cereal products, not solely in grain form, and classified it under Heading 19.04. The learned DR argued that the product involved pre-cooking and was a prepared food fit for consumption after processing, thus falling under Heading 21.07. The Tribunal agreed with the DR, emphasizing that the corn was in grain form, pre-cooked, and prepared through various processes, leading to its classification under Heading 2107.91 as an edible preparation not elsewhere specified.

The Tribunal's decision was based on the interpretation of the Central Excise Tariff Act and the process of manufacture of the "Sweet corn cream style" product. The Tribunal considered the contentions of the parties regarding the classification under different headings and analyzed the nature of the product and the processes involved in its preparation. The Tribunal highlighted the distinction between products solely obtained by swelling or roasting of cereals, falling under Heading 19.04, and products involving pre-cooking and additional processes, falling under Heading 21.07. By examining the entire manufacturing process, including mincing, cooking, and addition of ingredients, the Tribunal concluded that the product in question was appropriately classified under Heading 2107.91 as an edible preparation not elsewhere specified. This decision provided clarity on the classification of similar products and upheld the Revenue's position, setting aside the Collector (Appeals) order and allowing the appeal.

In conclusion, the Appellate Tribunal CEGAT, New Delhi, through its detailed analysis of the manufacturing process and legal provisions, resolved the issue of classification of the "Sweet corn cream style" product under the Central Excise Tariff Act. By considering the nature of the product, the processes involved, and the relevant tariff headings, the Tribunal determined that the product should be classified under sub-heading 2107.91. This decision clarified the classification criteria for similar products and upheld the Revenue's position, highlighting the importance of a comprehensive assessment of manufacturing processes in excise classification disputes.