2014 (7) TMI 190

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..... ellants product called 'Chocolate club'. Whereas the appellants have claimed the classification of the said product under heading 1905.90, the lower authorities have classified the same as falling under heading 1803.00. 2. After hearing both sides duly represented by Shri Manjit Singh, learned advocate appearing for the appellants and Shri V P Batra, learned DR appearing for the Revenue, we find that the appellants are procuring biscuits as also chocolate from the market and by a process carried on with the aid of power, the biscuits purchased by the appellants are covered with chocolate and are being sold by them in the market under their name (chocolate clubs). While pleading for the classification of the same under chapter headi .....

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..... nts are using cocoa and chocolate preparations are one of the inputs used by them for the manufacture of said "Chocolate Clubs" i.e. 'Chocolate filled with Biscuits' and in accordance to Note 2 of the Chapter 19, heading No. 19.04 did not cover preparations containing more than 8% by weight of Cocoa Powder or coated with chocolate or other food preparations containing Cocoa of Chapter 18 and held that Cocoa and Cocoa preparations squarely fell under Chapter 18 of the Central Excise Tariff and "Chocolate Clubs" were Chocolate in any form, classifiable under CETH No. 1803.00 chargeable to CE duty @ 25%. 4. They have accordingly confirmed the demands of duty of Rs. 1,44,814/- along with imposition of penalty of Rs. 25,000/-. As is see .....

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..... ny process is ordinarily carried on with the aid of power   1905 .19 Other   1905 .20 Cakes and pastry     -Waffles and waters:   1905 .31 Coated with chocolate or containing chocolate   1905 .39 Other   1905 .90 Other 6. As is seen from the above, chapter heading 1803 covers chocolate in any form heading 1905 covers biscuits. Whether or not containing cocoa. Admittedly, the goods in question are nothing but the biscuits covered by chocolate. As such, it can be safely concluded that the product in question is the preparation of biscuits and properly classifiable under chapter heading of biscuits. Inasmuch as it is not specifically covered by any preceding sub heading of chapter heading 1 .....

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