9911796707
TMI Blog2015 (10) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... on the grounds of limitation, Since the proceedings against the Gurgaon Unit are based on proceedings against the Chennai Unit, and since in this case also the show cause notice for demand of duty for the period from April 2003 to February, 2005 has been issued by 30th April 2008, primafacie the same would also be time barred. Goods covered under sub-heading 1704.10 would be those where it is the gum which gives them essential character and in-fact in terms of the Provisions of Food Adulteration Rules 1955 (para A/25.02.01) the bubblegums and chewing gums must contain not less than 12.5% to 14% of gums. The product, in question, contains contains 97% of sugar and glucose, about 2% fats and colours and flavours and about 1% or less of gu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... process of re-packing undertaken by the Gurgaon Unit (the appellant) amounts to manufacture under section 2f(iii) of the Central Excise Act, 1944. The dispute in this present case is about classification of the product. According to the appellant the goods manufactured by them are other sugar confectionary classifiable under sub-heading 1704.90 of the Tariff, while according to the Department, the goods are classifiable as Chewing Gums under sub-heading 1704.10. In this regard, there is no dispute that the mentos mint manufactured by the appellant contains 97% sugar and glucose, about 2 % fat, colours and flavours and contains only less than 1% of gum arabic which according to the appellant used as stabilizer and its function is to prev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal would also not survive on the ground of limitation, that in any case, the appellant have strong prima-facie case on merit as while the product, in question, contains less than 1 % of Gum Arabic and the purpose of gum Arabic is to prevent crystallization of sugar and uniform distribution of fat, while in terms of para A.25.02.01 of the Prevention of Food Adulteration Rules, 1955, the chewing gums or bubblegums must have not less than 12% to 14% of gum by weight, that in view of this, even in terms of the Prevention of Food Adulteration Rules, 1955, the product, in question, cannot be classified as chewing gum, that sub-heading 1704.10 would contain only those products wherein the gum component is predominant and the gum gives its ess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice for demand of duty for the period from April 2003 to February, 2005 has been issued by 30th April 2008, primafacie the same would also be time barred. 7. Apart from this, we also find merit in the appellant's plea that the goods covered under sub-heading 1704.10 would be those where it is the gum which gives them essential character and in-fact in terms of the Provisions of Food Adulteration Rules 1955 (para A/25.02.01) the bubblegums and chewing gums must contain not less than 12.5% to 14% of gums. The product, in question, contains contains 97% of sugar and glucose, about 2% fats and colours and flavours and about 1% or less of gum arabic which is used as stabilizer and emulsifier, and its function is to prevent the crystall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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