2019 (3) TMI 1220 - AT - Central Excise

Classification of goods - 2-in-1 Eclairs - Kismi Tofee - Kismi Toffee Bars - classified under Sub-heading 1704 90 20 or under Sub-heading 17049 030? - benefit of exemption in terms of N/N. 12/2012-CE dated 17.03.2012 - Held that - The issue is no more res-integra and stands settled by the Tribunal s decision in the same assessee s case reported as M/s Marko Foods & M/s Pahladrai Confectionaries Pvt. Ltd. 2018 (9) TMI 14 - CESTAT ALLAHABAD where the Tribunal has held that the appellant s products i.e. Parle 2-in-1 Eclairs , Kismi Toffee and Kismi Toffee Bars are classifiable under the heading adopted by the assessee s and are entitled to benefit of Notification No.12/2012-CE dated 17.03.2012 - appeal dismissed - decided against Revenue.

Summary

Issues:
Classification of products under different sub-headings for excise duty liability; Interpretation of Notification No.12/2012-CE for exemption eligibility.

Analysis:
The case involved a dispute regarding the classification of products manufactured by the respondents for excise duty purposes. The respondents classified their products under Sub-heading 1704 90 20 and availed exemption under Notification No.12/2012-CE. However, the revenue authorities contended that the correct classification was under Sub-heading 1704 90 30, attracting excise duty under Section 4A of the Central Excise Act, 1944. Show cause notices were issued, leading to orders by the Original Adjudicating Authority. The Commissioner (Appeals) later held, based on a test report, that the goods were properly classified under heading 1704 90 20 as 'Boiled Sweets,' and the duty liability was discharged correctly, setting aside the original orders.

The Tribunal referred to a previous decision in the same assessee's case, where it was held that the products in question were correctly classified under the heading adopted by the assessee and were entitled to the benefit of Notification No.12/2012-CE. The Tribunal emphasized that the test report indicated the goods did not qualify as white chocolate, which was a crucial factor in determining the correct classification. The test report highlighted that the goods did not contain cocoa butter, a key component of white chocolate, and had a fat content of 8%, lower than the required 25% for white chocolate. Therefore, the goods qualified for exemption under the relevant notifications for Sugar Confectionary, excluding white chocolate and bubble gum.

Given the precedent set in the same assessee's case and the detailed analysis of the test report, the Tribunal found no merit in the revenue's appeals and rejected them accordingly. The judgment highlighted the importance of accurate classification based on specific characteristics and ingredients, as well as the significance of test reports in determining the correct duty liability and exemption eligibility under relevant notifications.