2002 (9) TMI 184 - AT - Central Excise

Summary

Issues:
The judgment involves the classification of items, namely cheetos wheels and lehar kurkure, under the Central Excise Tariff Act (CETA) and the applicability of duty exemption under Notification 5/99.

Classification Issue:
The dispute revolves around the classification of cheetos wheels and lehar kurkure. The appellants claimed these items to be under Heading 2108 for namkeen, seeking duty exemption under Notification 5/99. However, the Revenue argued for classification under sub-heading 1904.10, attracting duty at 16% ad valorem. The lower authorities upheld the Revenue's classification, leading to duty demand and penalty imposition.

Legal Analysis:
The Tribunal analyzed Heading 19.04 of the CETA, which pertains to prepared foods from cereals obtained by swelling or roasting, excluding corn, flour, and meal. The ingredients of cheetos wheels and lehar kurkure were examined, revealing they were fried products and not obtained by swelling or roasting cereals. The Tribunal referred to precedents like T.T.K. Pharma Ltd. and CCE, Lucknow v. Nektar Food Products to support this interpretation.

Decision and Precedent:
The Tribunal found that the items did not fit under Heading 19.04 but rather under Heading 21.08 (sub-heading 2108.99) for edible preparations. Citing CCE, Lucknow v. Tiemac Snack Food P. Ltd., which involved similar products, the Tribunal ruled in favor of classification under Heading 21.08, making the items eligible for duty exemption under Notification 5/99. The impugned order was set aside, and the appellants' appeals were allowed with consequential relief.

This judgment clarifies the correct classification of cheetos wheels and lehar kurkure under the CETA, emphasizing the importance of ingredient analysis and legal precedents in determining duty liability and exemption eligibility.