2014 (8) TMI 176 - AT - Customs

Classification of goods - Import of Red Bull Energy Drink Proprietary Food - Classification under CTH 2202 90 90 or under CTH 2202 10 10 - benefit of Notification no. 02/2006-CE(NT) dated 01.03.2006 - Held that - As this product in question is having caffeine contents, glucose and Vitamins etc. therefore, the said product cannot be classified under 2202 1010 as the scope of that classification is limited i.e mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured. Moreover, the Harmonized Tariff Schedule classified the product in question as 2202 90 90. The FSSAI also held that the said product is caffeinated beverage and not mineral waters and aerated waters. Moreover, the impugned product Energy Drink is not recommended for children, pregnant or lactating mothers and persons sensitive to high doses of caffeine. Therefore, it is held that this product contains of caffeinated beverage, mineral water and aerated waters, therefore, the appropriate classification is 2202 90 90 - Following the precedent decision in the case of Waterways Shipyard Pvt. Ltd. (2011 (12) TMI 127 - CESTAT, MUMBAI), more appropriate classification of the impugned Energy Drink is 2020 90 90. In common parlance also it is known as energy drink other than mineral water and aerated water - Decided against Revenue.

Summary

Issues: Classification of imported goods under Customs Tariff Act.

Analysis:
1. The appeal involved a dispute regarding the classification of a consignment of "Red Bull Energy Drink Proprietary Food" imported by the respondent. The respondent claimed classification under CTH 2202 90 90, while the Revenue argued for classification under CTH 2202 10 10.

2. The Revenue contended that the goods should be classified under CTH 2202 10 10, which includes sweetened or flavored mineral waters and aerated waters. They argued that the product fell under this classification due to its composition and characteristics, as described in Chapter 22 of the Customs Tariff Act.

3. The respondent, on the other hand, asserted that the product was an energy drink containing water, Glucose, Vitamins, Caffeine, Taurine, etc., and was correctly classifiable under CTH 2202 90 90 as Others. They cited various sources, including the Food Safety and Standards Authority of India (FSSAI) and US Customs Ruling, to support their classification argument.

4. The Tribunal analyzed the ingredients of the product, the nature of the drink, and various authorities' opinions. They noted that the product contained caffeine, glucose, and vitamins, making it more suitable for classification under CTH 2202 90 90 as a caffeinated beverage rather than mineral or aerated water under CTH 2202 10 10.

5. Referring to a previous case law, the Tribunal applied the Rule of Interpretation under the Customs Tariff Act to determine the appropriate classification. They concluded that, based on the characteristics and composition of the energy drink, the most suitable classification was under CTH 2202 90 90, in line with the precedent set in a similar case.

6. Ultimately, the Tribunal upheld the Commissioner (Appeals)'s decision classifying the energy drink under CTH 2202 90 90. They dismissed the Revenue's appeal, finding no fault with the impugned order.

This detailed analysis of the judgment highlights the arguments presented by both parties, the Tribunal's assessment of the product's composition, and the application of relevant legal provisions to determine the appropriate classification under the Customs Tariff Act.