Central Excise - Classification of fruit pulp drinks like Maaza and other products - Whether under heading 20.01 or under heading 22.02 of Central Excise Tariff - Central Excise - 12/88

Central Excise - Classification of fruit pulp drinks like Maaza and other products - Whether under heading 20.01 or under heading 22.02 of Central Excise Tariff Circular No. 12/88 Dated 28-3-1988 [From F. No. 16/5/87-CX.1] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Classification of fruit pulp drinks like Maaza and other products - Whether under heading 20.01 or under heading 22.02 of Central Excise Tariff. A doubt has been raised whether the fruit pulp based drinks like Maaza and similar products are classifiable under heading 20.01 or under heading 22.02. The matter was earlier examined and the Board clarified in letter F.No. 16/3/87-CX.1 dated 22nd June, 1987 that Maaza and like products are correctly classifiable under heading 22.02. However, since then references have been received that products like Maaza are based on fruit pulp and they are sold as fruit juices and, therefore, they should be classified as covered by preparations of vegetables, fruits, nuts or other parts of plants, as fruit juices under heading 20.01. 2. The process of manufacture of Maaza consists of mixing mango pulp with raw syrup, citric acid, essence and water during various stages of manufacture and that on an average 2,400 litres of Maaza contains 363 Kgs. to 365 Kgs. of mango pulp which comes to about 15 per cent. Prior to the introduction of the new Central Excise Tariff from 28.2.1986, products like Maaza were classified as fruit juices under Tariff Item IB and charged to duty accordingly. 3. There is specific mention of fruit juices obtained from fleshy or pulpy fruits at page 153 of HSN explanatory notes, according to which certain juices obtained from very fleshy fruits like tomatoes, peaches, apricots etc. are included in HSN heading 20.09 and these juices contain part of the pulp in suspension. Thus, it appears HSN heading 20.09 covers fruit pulp based fruit juices like the case of Maaza inasmuch as the product Maaza is based on mango-pulp. The corresponding heading in the Central Excise Tariff is 20.01. 4. Further in the HSN, explanatory notes, under heading 22.02 ... (in page 164 volume I) it is stated that beverages consisting or ordinary drinking water, sweetened or not, flavoured with fruit juices are included in the heading 22.02 of HSN. Thus beverages flavoured with fruit juices and not fruit juices are covered under heading 22.02 of HSN and (same heading in C.E.T. also). In the instant case, Maaza is not a beverage flavoured with mango pulp in as much as the pulp content is to the extent of 15 per cent and the mango pulp is the main ingredient. Maaza cannot therefore be called a beverage flavoured with fruit juice. It is sold as mango juice and it is based on mango pulp rather than flavoured with it. For these reasons it may not be treated as falling under heading 22.02. It may merit classification as a fruit juice or preparation of fruits under heading 20.01 of Central Excise Tariff. 5. The matter was discussed at the East Zone Collectors' Conference in December, 1987 (point No. 12) and a view was taken that since the distinction between a fruit juice and a beverage flavoured with fruit juice was critical to the correct determination of classification, the Food Technological Research Institute, Mysore should be consulted in the matter before taking a final decision. 6. Accordingly Central Food Technological Research Institute were requested to convey their views in the matter and they have clarified that flavoured, as understood in the field of food technology, are added in minute quantities to simulate or adjust natural flavour of a product. Since Maaza contains natural pulp of mango, as much as 15 per cent by weight, it cannot be said that it is a flavoured beverage. 7. The Ministry agrees with the views of Central Food Technological Research Institute and accordingly the correct classification of fruit pulp based drinks like Maaza would be under heading 20.01 of the Central Excise Tariff. 8. Board's instructions F.No. 16/3/87-CX.1 dated 22nd June, 1987 should be treated as modified to the extent above. 9. Suitable trade notice may be issued for the benefit of the trade.