Central Excise - Classification of Squashes like orange squash whether under sub-heading No. 2001.10 or sub-heading No. 2107.91 of CET - Central Excise - 2/89

Central Excise - Classification of Squashes like orange squash whether under sub-heading No. 2001.10 or sub-heading No. 2107.91 of CET Circular No. 2/89 Dated 10-1-1989 [From F. No. 16/1/88-CX.1] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Classification of Squashes like orange squash whether under sub-heading No. 2001.10 or sub-heading No. 2107.91 of CET. A doubt has been raised whether the Squashes, manufactured out of fruit juice like orange juice containing a minimum of 25% of fruit juice, food colours, preservatives, citric acid all put together 4% and total soluble solids including sugar being 40% minimum and the rest being water, are classifiable under sub-heading 2001.10 or sub-heading 2107.91 of CET. The matter was discussed in the South Zone Central Excise Collectors' General-Cum-Tariff Conference held at Madras on 11th and 12th January, 1988. The Conference was of the view that squashes are based on sugar syrup and are preparations for lemonades or other beverages as defined in Chapter Note 5(j) of Chapter 21 and therefore preparations like squashes are classifiable under heading 21.07 of CET. Subsequently, views of the Chief Chemist were also obtained. He was of the view that the squashes under reference contain 25% fruit juice and in common trade parlance Squash is a preparation based on fruit juice and not the fruit juice itself. Therefore, orange squash or other squashes may merit classification under heading 21.07 of CET and not as fruit juices under heading 20.01 of CET. 2. The matter has been examined by the Board. The Board took into account the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi Order No. 498/1988-D dated 11.7.88 in Appeal No. E.3210/1987-D in the case of M/s. Northland Industries, New Delhi v. Collector of Central Excise, New Delhi wherein the CEGAT has held that fruit squashes and cordials which are preparations of fruit juices are correctly classifiable under heading No. 20.01 of CET. In this case the Tribunal has relied upon Part II of the Fruit Products Order, 1955, which sets out the specifications for fruit juice, squashes and cordials, according to which "Fruit juice shall be unconcentrated liquid product expressed from ripe fruit and may contain portions of the pulp and other cellular matter natural to the fruit. The only substances that may be added to the fruit juice or pulp are water, peel oil, fruit essences and flavours, common salt, sugar, invert sugar, and/or liquid glucose, ascorbic acid, citric acid, permitted colours and preservatives." Tribunal also held that preparations of fruit juice whether or not containing added sugar or other sweetening matter, are covered by the heading 20.01. 3. Tribunal's above mentioned order has been accepted by the Board. Accordingly it has been decided that squashes which are preparations of fruit juices, are correctly classifiable under heading 20.01 of CET.