2019 (9) TMI 1221 - AT - Customs

Classification of imported goods - Coco Jelly - whether classified under CTH 17049090 or under CTH 21069099? - benefit of exemption notification No. 46/2011 Cus dt. 01.06.2011. HELD THAT - The heading 1704 90 10 covers Jelly confectionary. What is being imported by the Appellant is Coco Jelly. It is not sweetened food preparation viz. Vegetables, fruit, fruit peel preserved by sugar and jams, peel etc so as to exclude the same from 1704. Therefore by taking recourse to such exclusion, it cannot be said that the impugned products would merit classification under chapter 2106. Under CTH 21.06 only those food preparation will be included which are Not elsewhere specified or included . The Appellate authority has not given reason to exclude the goods from 1704 and straightway taken recourse to exclusion clause of HSN in 1704 which is not applicable as the goods nowhere fall under the excluded category. Clearly the impugned goods cannot be classified under CTSH 2106 90 99 and would merit classification under CTSH 1704 90 90 only. We also find from the Bill of Entries filed by other importers that the Pudding and Jelly are being classified under CTSH 1704 90 90 and there is no objection from the revenue. Even the Food Safety and Standards Authority of India has classified the goods as Pudding or jelly as the case may be. The impugned goods would merit classification under Chapter sub heading 17049090 - Appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of imported goods under Customs Tariff subheading 17049090, applicability of exemption notification No. 46/2011, differential duty demand, penalty imposition.

Classification Issue:
The appeal was filed against a Customs Commissioner's order challenging the classification of imported Nata De Coco, Jelly, puddings, and Yogo ice under Customs Tariff subheading 17049090. The appellant claimed exemption under notification No. 46/2011. The revenue contended that the goods should be classified under chapter subheading 21069099. The Appellate Tribunal analyzed the ingredients of the products and relevant HSN Explanatory Notes. The appellant argued that the goods fell under heading 17.04 for sugar confectionery, not under 21.06 for food preparations. The Tribunal found that the goods did not fall under the excluded categories of sweetened food preparations, thus meriting classification under 17049090. The Tribunal referred to previous judgments and Bill of Entries to support its decision.

Legal Interpretation Issue:
The Tribunal examined the HSN Explanatory Notes and relevant chapters to determine the correct classification of the imported goods. It considered the exclusion clauses for sweetened food preparations under chapter 17 and concluded that the goods did not fall under those exclusions. By applying the principle of "Not elsewhere specified or included," the Tribunal ruled that the goods should be classified under 17049090, as they were not sweetened food preparations preserved by sugar or jams. The Tribunal cited precedents and Bill of Entries to support its interpretation.

Precedent Analysis Issue:
The Tribunal referred to previous judgments, such as the case of Campco Chocolate Factory, to support its decision on the classification issue. It highlighted the importance of correctly classifying products under the Customs Tariff Act based on their ingredients and characteristics. The Tribunal emphasized the need to consider specific descriptions and exclusion clauses while determining the appropriate classification. The analysis of precedents played a crucial role in the Tribunal's decision-making process.

Conclusion:
The Appellate Tribunal, after thorough analysis of the ingredients, HSN Explanatory Notes, and relevant chapters, concluded that the imported goods should be classified under Chapter subheading 17049090. The Tribunal set aside the impugned order and allowed the appeal, providing consequential relief to the Appellant. The decision was based on the correct interpretation of the Customs Tariff Act and exclusion clauses related to sweetened food preparations, supported by precedents and Bill of Entries. The judgment was pronounced on 27.09.2019 by the Appellate Tribunal CESTAT AHMEDABAD.