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2022 (11) TMI 595 - AT - Central ExciseClassification of goods - Minute Maid Nimbu Fresh (MMNF) - to be classified under Chapter sub-heading 220290.20 of Central Excise Tariff Act, 1985 or under chapter sub-heading No 220210.20 of the Central Excise Tariff Act, 1985 - exemption under N/N. 3/2006-C.E. dated 01.03.2006 - HELD THAT - The issue involved in the present case is covered by the decision of the Larger Bench in the case of M/S BRINDAVAN BEVERAGES PRIVATE LIMITED, KRANTI KUMAR CHANDRAKAR, M/S PEPSICO INDIA HOLDINGS PRIVATE LIMITED VERSUS COMMISSIONER CUSTOMS, CENTRAL EXCISE AND SERVICE TAX, HAPUR AND BAREILLY 2019 (10) TMI 762 - CESTAT ALLAHABAD (LB) . Taking note of the difference in the opinions, the Larger Bench held that the three products MMNF, Nimbu Masala Soda and Nimbooz would classify under Tariff Item No. 2202 90 20 as fruit juice based drinks. Following the decision and the consensus arrived at by the Larger Bench, the appeals are allowed.
Issues:
Classification of "Minute Maid Nimbu Fresh" under Central Excise Tariff Act, 1985 Issue Analysis: 1. Classification Dispute: The issue in this case revolves around the correct classification of the product "Minute Maid Nimbu Fresh" (MMNF) under the Central Excise Tariff Act, 1985. The appellant wrongly classified the product under Chapter sub-heading 220290.20 to avoid payment of Central Excise Duty, claiming exemption under Notification No 3/2006-C.E. However, the adjudicating authority held that the correct classification should be under chapter sub-heading No 220210.20, attracting Central Excise duty. The appellant's argument, based on various factors like the percentage of fruit content and adherence to Prevention of Food Adulteration Rules, was not accepted by the Tribunal. 2. Larger Bench Decision: The matter was taken up before a Larger Bench of the Tribunal due to conflicting opinions. The Larger Bench, in the case of Brindavan Beverages Pvt. Ltd., concluded that products like MMNF, Nimbu Masala Soda, and Nimbooz fall under Tariff Item No. 2202 90 20 as fruit juice based drinks. The decision emphasized that the fruit juice content and total soluble solids in these products meet the regulatory requirements, leading to their classification as fruit juice based drinks. The Tribunal rejected the classification under Tariff Item No. 2202 10 20 and upheld the classification under Tariff Item No. 2202 90 20, in line with the Regulations. 3. Outcome and Appeals: Following the Larger Bench decision, the Tribunal set aside the demands raised by the Original Authority, confirming that the beverages in question do not fall under Tariff Item No. 22021020. The appeals filed by the appellant were allowed, except for a specific part related to cenvat credit. The Tribunal's decision aligned with the consensus reached by the Larger Bench, providing clarity on the classification of similar products as fruit juice based drinks under the Central Excise Tariff Schedule. In conclusion, the judgment addressed the classification dispute regarding "Minute Maid Nimbu Fresh" by relying on the Larger Bench decision, which clarified the correct classification under the Central Excise Tariff Act, 1985. The Tribunal's analysis emphasized adherence to regulatory requirements and common parlance in determining the classification of fruit juice based drinks, leading to the allowance of the appeals filed by the appellant.
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