1999 (2) TMI 112 - AT - Central Excise

Summary

Issues: Classification of Softy (Plain) Mix, Softy (Choco) Mix, and Softy (Shake) Mix under specific Tariff Headings.

Softy (Plain) Mix Classification:
The Assistant Collector initially classified Softy (Plain) Mix under Tariff Heading 1901.90, but the lower appellate authority remanded the matter due to lack of a show cause notice. The Appellate Tribunal agreed with the remand decision, emphasizing the absence of a notice for the classification change, leading to a re-adjudication.

Softy (Choco) Mix Classification:
The lower appellate authority granted the benefit of Notification 9/90-C.E. to Softy (Choco) Mix, stating that since it contained only chocolate and not cocoa powder, it was eligible for the benefit. The Revenue argued that chocolate inherently contains cocoa powder, thus disqualifying it. However, the Tribunal upheld the lower authority's decision, distinguishing chocolate from cocoa powder and allowing the benefit under the notification.

Softy (Shake) Mix Classification:
The Revenue contended that Softy (Shake) Mix, with 87% milk content, fell under Tariff sub-heading 2202.90 as a ready-to-serve beverage. The lower appellate authority disagreed, noting similarities with the other mixes but lacking vanilla or other essences. However, the Tribunal ruled in favor of the Revenue, stating that as a ready-to-serve beverage, it should be classified under Tariff Heading 2202.90, thus not eligible for the benefit of Notification 9/90-C.E.

Conclusion:
The Tribunal revised the duty demand based on the classification decisions, highlighting the importance of proper classification under specific Tariff Headings. The judgment clarified the distinctions between products, the relevance of show cause notices, and the interpretation of relevant notifications for classification and benefit eligibility.