2013 (6) TMI 450 - AT - Central Excise

Classification - Multigrain Bread Concentrate - Chapter 11 or Chapter 19 - Held that - the Multigrain Bread Concentrate is a mixed cereal in different proportion with additives of flour improver. The Multigrain Bread Concentrate is produced in a usable condition and the additives have been used for producing bread by Bakery industry. - prima facie Multigrain Bread Concentrate cannot be considered as flour preparation. - stay granted.

Summary

Issues:
1. Classification of 'Multigrain Bread Concentrate' under Chapter 19 of the Central Excise Tariff Act, 1985.
2. Applicability of waiver of pre-deposit of duty and interest.
3. Interpretation of the Chemical Examiner's opinion and its relevance in classification.
4. Comparison of the product with similar items under Chapter 19 of the Tariff.

Analysis:

1. The main issue in this case revolves around the classification of 'Multigrain Bread Concentrate' under the Central Excise Tariff Act. The applicant claimed classification under Chapter 11, while the Revenue sought to classify it under Chapter 19. The dispute arose from a show-cause notice reclassifying the product, leading to conflicting decisions by the adjudicating authority and the Commissioner (Appeals).

2. The applicant sought a waiver of pre-deposit of duty amounting to Rs. 3,60,401/- and interest. The Tribunal considered the arguments presented by both sides and ultimately granted the waiver, allowing the appeal to proceed without the need for immediate payment.

3. A significant aspect of the case involved the interpretation of the Chemical Examiner's opinion regarding the nature of the 'Multigrain Bread Concentrate'. The appellant argued that the Chemical Examiner exceeded their authority by opining on the classification under Chapter 19, contending that the product did not qualify as a food preparation under that chapter. The Tribunal acknowledged the appellant's arguments and found merit in their contention that the product did not fall under the category of food preparation as per Chapter 19.

4. The comparison of the 'Multigrain Bread Concentrate' with pre-mix items like cakes and muffins under Chapter 19 was crucial in determining the appropriate classification. The Revenue argued that the products were similar to muffin and cake mixes, justifying their classification under Chapter 19. However, the Tribunal observed that the 'Multigrain Bread Concentrate' was a mixed cereal with additives used in bread production, distinguishing it from traditional flour preparations covered under Chapter 19.

In conclusion, the Tribunal granted the waiver of pre-deposit and stayed the recovery of dues during the appeal process, emphasizing the unique nature of the 'Multigrain Bread Concentrate' and its classification under the Central Excise Tariff Act.