1992 (8) TMI 183 - AT - Central Excise

Summary

Issues Involved:
1. Classification of the product 'Fry Snack Foods called Fryums'.
2. Eligibility for the benefit of Notification No. 12/90-C.E., dated 20-3-1990.
3. Imposition of penalty and approval of classification list.

Summary of Judgment:

1. Classification of the Product 'Fry Snack Foods called Fryums':
The appellants sought classification of 'Fryums' under Chapter Heading 21 of the Central Excise Tariff Act, 1985. The Collector (Appeals) upheld this classification but did not specify the sub-heading. The Tribunal confirmed that the product falls under Heading 2107, specifically sub-heading 2107.99 as 'Other', carrying a nil rate of duty. This classification was based on the fact that the product is not 'Prasad or Prasadam', 'Sterilised or pasteurised miltone', nor 'Put up in unit containers and ordinarily intended for sale'.

2. Eligibility for the Benefit of Notification No. 12/90-C.E., dated 20-3-1990:
The appellants contended that 'Fryums' should be considered 'Namkeen' and thus eligible for the benefit of Notification No. 12/90-C.E. The Collector (Appeals) denied this benefit, interpreting 'Namkeen' in the notification to denote only ready-to-eat items like Bhujiya and Chabena. The Tribunal disagreed, stating that the term 'such as' in the notification is illustrative, not exhaustive. The Tribunal noted that other items listed in the notification (e.g., Papad, Idli-mix, Dosa-mix) also require frying before consumption. Therefore, 'Fryums' should be considered 'Namkeen' and eligible for the notification's benefits.

3. Imposition of Penalty and Approval of Classification List:
The appellants argued against the imposition of a Rs. 500/- penalty and sought approval of their classification list, claiming the benefit of Notification No. 19/89-C.E., dated 1-3-1989. The Tribunal did not specifically address the penalty but implied that since 'Fryums' fall under the nil duty sub-heading 2107.99, the question of excise duty demand does not arise. Consequently, the classification list should be approved, granting the benefit of the relevant notifications.

Conclusion:
The appeal was allowed with consequential relief, confirming the classification of 'Fryums' under sub-heading 2107.99 and granting the benefit of Notification No. 12/90-C.E., dated 20-3-1990.