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TMI Blog1994 (3) TMI 201X X X X Extracts X X X X X X X X Extracts X X X X ..... 20.01 and 22.02 are reproduced as under - Heading No Description of goods 20.01 Preparations of vegetables, fruit, nuts or other parts of plants, including jams, fruit jellies, marmalades, fruit or not puree and fruit or nut pastes, fruit juices and vegetables juices, whether or not containing added sugar or other sweetening matter" 22.02 Natural or artificial mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured; other non-alcoholic beverages, not including fruit or vegetable juices of heading No. 20.01" 3. None appeared for the appellants - M/s. Krishna Distt. Milk Producers Union in Appeal Nos. 4678/91 and 5155/91-D at the time of hearing. However, we find that there was a request from them to decide the case on merits. M/s. Sri Sarvaraya Sugars Ltd. were represented by Shri C.S. Rao, learned Consultant, M/s. Hyderabad Bottling Company Pvt. Ltd. were represented by Shri V. Lakshmi Kumaran, learned Advocate and M/s. Spectra Structurals Pvt. Ltd. were represented by Shri V.K. Dorai Raj, learned Advocate, respectively. The Department was represented by Shri J.M. Nair, learned DR in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e definition of either fruit juice or beverages in the tariff the dictionary meaning has to be looked into. Accordingly, beverage is a broader term compared to juice and in the instant case, it is not a mere fruit juice but more than that since water is being added to the syrup and the mango pulp or original juice as the case may be, gets diluted giving it the characteristics of Beverage and accordingly, department was justified in classifying the items in question as other non-alcoholic beverages under Heading 22.02 of the CET. He said that Explanatory Notes to the HSN with reference to Chapter 20 as given in page 154 of the HSN is helpful to decide the issue and he referred to the relevant explanation which is as follows :- However, the addition of water to a normal fruit or vegetable juice, or the addition to a concentrated juice of a greater quantity of water than is necessary to reconstitute the original natural juice, results in diluted products which have the character of beverages of Heading 22.02. Fruit or vegetable juices containing a greater quantity of carbon dioxide than is normally present in juices treated with that product (aerated fruit juices) and also lemonade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ages may be alcoholic or non-alcoholic. The non-alcoholic beverages may be aerated or non-aerated and may be sweetened or not and may be flavoured with fruit juices or essences or extracts and may include drinks rendered ready for consumption as a beverage. 11. In fact Heading 22.02 of HSN covers - Lemonade, flavoured SPA waters and flavoured aerated waters, and other non-alcoholic beverages, not including fruit and vegetable juices falling within Heading No. 20.07. In fact, this heading covers non-alcoholic beverages not classified under other headings, particularly headings 20.07 and 22.01". 12. It is also mentioned there that this heading does not include; (a) fruit and vegetable juices falling within 20.07 whether or not used as beverages." 13. It shows that beverages could be classified either under 22.02 or 20.07 or 20.01 but 22.02 of HSN does not cover those beverages including fruits and vegetable juices which fall under other Headings. 14. It also shows that fruit and vegetable juices falling within Heading 20.07 may or may not be used as beverages. 15. Heading 20.07 of HSN covers Fruit juices (including grape must) and vegetable juices, whether or not containi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h that water is in larger/greater proportion than fruit juice or liquidised pulp, in that case, the product would be classifiable as beverage under Heading 22.02 (inclusion of a small quantity of fruit juice or liquidised pulp notwithstanding). 20. As neither side has filed any chemical test report and the exact extent of dilution has neither been disclosed nor considered by the authorities below, the impugned orders are set aside and the matters are remanded for de novo consideration in the light of the above observations. Sd/- (S.K. Bhatnagar) Dated : 7-8-1993 Vice President DIFFERENCE OF OPINION 21. In view of the difference of opinion between the Hon ble Judicial Member and the Vice President, the matter is submitted to the Hon ble President for reference to a Third Member on the following point : Whether in the facts and circumstances of the case, the appeals are required to be rejected as held by Hon ble Judicial Member or the matter is required to be remanded, in view of the observations and findings of the Vice President Sd/- Sd/- (G.A. Brahma Deva) (S.K. Bhatnagar) Dated : 1-9-1993. Member (J) Vice President 22. [Order per : P.C. Jain, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s. Krishna Distt. Milk Producers Union (KDMPU) which has requested for decision on merits and Smt. J.M.S. Sundaram, learened SDR, for the Revenue. It is apparent from the tariff descriptions of the two headings, as extracted in the order of the learned brother, Shri G.A. Brahma Deva that non-alcoholic beverages but not including fruit or vegetable juices of Heading 20.01 fall under Tariff Heading 22.02. It is nobody s case that the products under consideration, namely the fruit drinks produced by KDMPU or Maaza produced by other appellants are not non-alcoholic beverages inasmuch as they are ready to serve drinks. Question of the products falling under Tariff Heading 22.02 is obviously dependent upon the fact whether these products fall under Tariff Heading 20.01 under the description `fruit juices . It is to be noted that the expression `fruit juices is not defined under Tariff Heading 20.01 or in Chapter 20. Therefore, a normal and natural meaning as understood by the consumers and trade in general has to be given to this expression. As normally understood `fruit juice is extracted from a good ripe fruit. In this context, it is appropriate to rely on the HSN Explanatory Notes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... treated with that product (aerated fruit juices), and also lemonades and aerated water flavoured with fruit juice are also excluded (Heading 22.02)." It is apparent from the process of manufacture undertaken by the appellants herein in so far as Maaza is concerned that fruit drink `Maaza is based on Mango pulp. It may not be called a mango juice in view of the distinction in process of its manufacture from that stated in HSN Explanatory Notes extracted above. Assuming that process employed is immaterial to the product being named as `fruit juice , then questions raised by the Hon ble Vice President in his orders assume importance. It is necessary to know the dryweight fruit contents in original/natural mango juice. Further, what are included in Tariff Heading 20.01 are, inter alia, (i) preparations of fruit and (ii) fruit juices. The process of manufacture of Maaza, as set out above, in my view makes `Maaza a preparation of mango fruit based on mango pulp although it is at the same time a non-alcoholic beverage. Preparation of fruit is clearly covered under Tariff Heading 20.01. Non-alcoholic beverage excluding fruit juice is covered by Tariff Heading 22.02. Nevertheless, Maaza ..... X X X X Extracts X X X X X X X X Extracts X X X X
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