2001 (3) TMI 350 - AT - Central Excise

Summary

Issues:
Classification of 'instant tea' under Central Excise Tariff Act - Chapter sub-heading 2107.91 vs. 2101.20.

Analysis:

1. The dispute revolves around the correct classification of 'instant tea' manufactured from tea waste. The appellants claimed its classification under chapter sub-heading 2107.91, while the impugned order classified it under 2101.20, which covers extracts, essences, and concentrates of tea and preparations based on these products.

2. The appellant's counsel argued that a previous case involving Tata Tea Ltd. established that instant tea should not be considered as tea, thus challenging the classification under 2101.20. Additionally, the counsel highlighted that under the Tea Waste (Control) Order and Food Adulteration Act, instant tea should not be categorized as 'tea'.

3. The Departmental Representative (DR) contended that the impugned order correctly applied chapter sub-heading 2101.20 to instant tea, emphasizing that this classification aligns with the relevant tariff provisions. The DR also noted that the previous classification by the appellants under 2101.20 until 31-3-1989 supports this classification and that instant tea is marketed without differentiation based on its source material.

4. Upon examining chapter sub-heading 2101, which includes extracts, essences, and concentrates of tea, the Tribunal concluded that instant tea, regardless of being produced from tea or tea waste and sold as tea, should be classified under 2101.20, not as an edible preparation. Therefore, the lower authorities' classification order was upheld.

5. Regarding the precedent set by the Tata Tea Ltd. case, the Tribunal clarified that the decision in that case, which focused on CESS levy on instant tea, was based on the definition of 'tea' under the Tea Act. However, for Central Excise duty purposes, instant tea falls under sub-heading 2101.20 as extracts, essences, and concentrates of tea. The Tribunal emphasized that the Tea Act's definition of 'tea' was irrelevant to the current dispute on duty levy under the Central Excise Tariff.

6. Ultimately, the Tribunal affirmed the classification of 'instant tea' under Central Excise Tariff sub-heading 2101.20, as per the impugned order, dismissing the appeal challenging this classification. The decision was based on the understanding that instant tea aligns with the description provided in the Central Excise Tariff, warranting its classification under 2101.20.