Central Excise- Classification of Ice Cream containing products like biscuits fruits, nuts and cakes etc. whether under Heading No. 2105 or 2107.91 of CET - Central Excise - 3/91-CX.1

Central Excise- Classification of Ice Cream containing products like biscuits fruits, nuts and cakes etc. whether under Heading No. 2105 or 2107.91 of CET Circular No. 3/91-CX.1 Dated 6-2-1991 [From F. No. 16/7/90-CX.1] Government of India Central Board of Excise Customs New Delhi Subject : Central Excise- Classification of Ice Cream containing products like biscuits fruits, nuts and cakes etc. whether under Heading No. 2105 or 2107.91 of CET. A doubt has been expressed regarding classification of Ice Cream containing products like biscuits, fruits, nuts and cakes, etc., whether under sub-heading 2105.00 or 2107.91 of the Central Excise Tariff. The issue is whether ice creams containing biscuits, cakes, fruits, and nuts would also qualify for classification under heading 2105 as "Ice Cream" and, if they qualify for classification under the above sub-heading, whether or not same attract concessional rate of duty under Notification No. 12/90-C.E., dated 20-3-1990 as amended by Notification No. 104/90-C.E., dated 16-5-1990, as the explanation to said notification restricts the concession to those products in the preparations of which milk, cream or any other product of milk is used (not fruits, cakes, biscuits and nuts etc.). 2. It is reported that one unit manufacturing the following varieties of products has filed classification list under sub-heading 2105.00 as Ice Cream and claims concessional rate of duty under Notification No. 12/90-C.E., dated 20-3-1990, as amended. (i) Sandwich Vanilla : Consists of a block of 80 ml. Vanilla ice cream sandwiched between two biscuits (20 ml.) wrapped in butter bag. It is marketed and known as sandwiched ice cream. (ii) Ice Cream Cakes : Consist of three layers of ice cream (100 ml.) between three layers of cake topped with vanilla ice cream and chocolate packed in thermocole and marketed as ice cream cake. (iii) Cassatta Ice Cream : Consist of three layers of ice cream of different flavours in bowl shaped topped with Vanilla ice cream and fruits and nuts having a base of cake wrapped in butter paper and packed in grey boat carton of one unit. It is marked 'Cassatta'. 3. The issue came up for discussion in the West Zone Tariff Conference held on 13th and 14th September, 1990. The Conference observed that the disputed products were known and sold in the market as Ice Cream only. Further, if they are taken as a composite articles, the classification would have to be determined in terms of Rule 3 of Rules of Interpretation to CETA. The Conference, therefore, arrived at the decision that such Ice Cream deserts would merit classification as Ice Cream under Heading 21.05 of CET and would be eligible for the concessional rate of duty under Notification No. l2/90-C.E., dated 20-3-1990 as amended by Notification No. 104/90-C.E., dated 16-5-1990. 4. The matter has been further examined in the Board in the light of the recommendations of the West Zone Tariff Conference. Board agrees with the views of the West Zone Tariff Conference, and accordingly, it is clarified that Ice Cream containing products like biscuits, fruits, nuts, cakes etc. would merit classification under Heading No. 21.05 of CET and entitled to concessional rate of duty in terms of Notification No. 12/90-C.E., dated 20-3-1990 as amended. 5. The field formations and trade interests may be informed accordingly.