1999 (8) TMI 390 - AT - Central Excise

Summary

Issues:
1. Classification of Sharbat-E-Azam under Tariff Heading 21.07.
2. Classification of Shilajit capsules.

Detailed Analysis:

1. Classification of Sharbat-E-Azam:
The issue in this matter pertains to the classification of Sharbat-E-Azam under Tariff Heading 21.07. The lower authority classified it as a non-specified edible preparation similar to Rooh Afza, which was previously classified under Tariff Heading 21.07. However, the advocate for the appellant argued that the judgment regarding Rooh Afza was reversed by the Apex Court, which held that Rooh Afza falls under Tariff Heading 22.10. The advocate pointed out a misprint in the Apex Court judgment, stating that the correct heading contended was Tariff Heading 2202.90. The Tribunal analyzed the submissions and concluded that the correct classification for Sharbat-E-Azam, based on the Apex Court's judgment, is under Tariff Heading 2202.90. The Tribunal noted that goods under Tariff Heading 2201.90 do not contain sugar, whereas those under 2202.90 do, and since Sharbat-E-Azam contains sugar, it aligns with the classification under 2202.90. Therefore, the Tribunal determined that the classification of Sharbat-E-Azam should be under Tariff Heading 2202.90.

2. Classification of Shilajit capsules:
Regarding the classification of Shilajit capsules, the lower authority based its decision on the classification of Shilajit tablets. The advocate for the appellant argued that Shilajit tablets contain additional inactive ingredients, leading to their classification under TH 21.07 as a food supplement. In contrast, Shilajit capsules contain only pure Shilajit, as confirmed by an Ayurvedic medicine reference. On the other hand, the SDR reiterated the lower authority's findings, highlighting the various ingredients present in Shilajit. The SDR argued that there is no substantial difference between Shilajit tablets and capsules based on the composition of raw Shilajit. The Tribunal, after considering both arguments, decided that further investigation into the manufacturing process of Shilajit tablets and capsules is necessary to determine if additional ingredients are added. Consequently, the Tribunal remanded the classification of Shilajit capsules for reevaluation in light of this direction.

In conclusion, the Appellate Tribunal CEGAT, New Delhi, addressed the issues of classification of Sharbat-E-Azam and Shilajit capsules. It clarified the classification of Sharbat-E-Azam under Tariff Heading 2202.90 based on the Apex Court's judgment and ordered a reevaluation of the classification of Shilajit capsules to determine if additional ingredients are present.