2015 (4) TMI 606 - SC - Central Excise

Classification of goods - manufacture of Milk N Nut - Classification under Chapter Heading 2001.10 or Chapter Heading 1704.90 - Held that - Assistant Commissioner came to the conclusion that the product was preparation of vegetables, fruits, nuts and parts of plants and therefore rightly classified under Chapter Heading 2001.10 and cannot be treated as sugar confectionery. He thus, dropped the proceedings by passing the final order dated 18.12.2001. The Department went in appeal. The Commissioner (Appeal) also upheld the orders. Same is the view taken by the Tribunal as well. Thus all the three authorities below have arrived at finding of fact that the product in question is vegetable preparation and is not sugar confectionery - no reason to interfere with this appeal - Decided against Revenue.

Summary

Issues: Classification of product for excise duty - Whether product is vegetable preparation or sugar confectionery.

In this case, the respondents were engaged in the manufacture of a product called Milk N Nut and claimed its classification under Chapter Heading No. 2001.10 as a preparation of vegetables, fruits, nuts, and parts of plants, attracting nil excise duty. The Department, however, issued a show cause notice contending that the product should be classified under Chapter Heading 1704.90 as sugar confectionery. The Assistant Commissioner, after examining the matter, concluded that the product was indeed a preparation of vegetables, fruits, nuts, and parts of plants, correctly classified under Chapter Heading 2001.10. Consequently, the proceedings were dropped, and this decision was upheld by the Commissioner (Appeal) and the Tribunal. The Supreme Court, after reviewing the lower authorities' orders, found no reason to interfere with the appeal and dismissed it, affirming the classification of the product as a vegetable preparation and not sugar confectionery.

This judgment revolves around the classification of a product, Milk N Nut, for excise duty purposes. The key issue was whether the product should be classified as a preparation of vegetables, fruits, nuts, and parts of plants under Chapter Heading 2001.10, attracting nil excise duty, or as sugar confectionery under Chapter Heading 1704.90. The authorities below, including the Assistant Commissioner, Commissioner (Appeal), and the Tribunal, all concurred that the product in question fell under Chapter Heading 2001.10 as a vegetable preparation, not sugar confectionery. These findings were considered as findings of fact, and the Supreme Court, upon examining the lower authorities' orders, found no grounds to interfere with the decision, leading to the dismissal of the appeal. The judgment underscores the importance of accurate classification for excise duty purposes and the significance of factual determinations made by the lower authorities in such matters.