1998 (10) TMI 144 - AT - Central Excise

Summary

Issues:
Classification of food items under Tariff Heading 20.01 or 21.07.

Analysis:
The judgment dealt with the classification of food items under Tariff Heading 20.01 or 21.07. The Respondents argued that the items should be classified under Tariff Heading 20.01 as "preparations of vegetables, fruits, nuts, or other parts of plants," while the Revenue contended that they should fall under Tariff Heading 21.07 for "edible preparations not elsewhere specified or included."

The tribunal analyzed the scope of Chapter 20, which specifically addresses preparations of vegetables, fruits, etc., and Heading 21.07, which pertains to "edible preparations not elsewhere specified or included." It was noted that before classifying a product under Chapter 21 or Heading 21.07, other chapters or headings in the Central Excise Tariff Schedule must be excluded.

Chapter Note 1 to Chapter 20 was considered, which states that the chapter covers products prepared or preserved by processes other than chilling, freezing, or certain preservation methods. This note clarifies that preparations of vegetables, fruits, etc., in Chapter 20 encompass processes beyond chilling or freezing.

The judgment differentiated between items like "special palada" and "suji halwa," which were found to be preparations of rice flakes and wheat suji without any vegetables or fruits. As these items did not involve vegetables or fruits, they were not classified as preparations of vegetables, fruits, nuts, or other plant parts under Chapter 20 but were placed under Heading 21.07 as argued by the Revenue.

In contrast, the remaining items such as "vegetable burger," "South Indian sambar," "vegetable cutlets," and "vegetable stew" were identified as preparations of vegetables mixed with additives like spices and oils. These items contained visible vegetables and were not processed by chilling or freezing, falling under Heading 20.01 as preparations of vegetables. Since they were packed in unit containers, they were classified under sub-heading 2001.10, leading to a partial allowance of the Revenue's appeal.

In conclusion, the judgment clarified the classification of food items based on their ingredients and preparation processes, ultimately determining whether they should be categorized under Tariff Heading 20.01 or 21.07.