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TMI Blog2016 (10) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... duty is confirmed on Jaljeera treating them as classifiable under 21.08 the demand does not sustain. Classification - Dehati Buknoo and Milk Masala - Held that:- the issue is now settled that Dehati Buknoo (Hazmi), Milk Masala are classifiable under 09.03 or similar such classification subsequent to 01-03-2005 and since the impugned orders have confirmed the demand treating Dehati Buknoo and Milk Masala under 21.08, the said demand does not sustain. Demand aolngwith interest and penalty - Gulabjamun Mix - only trading not manufacturing - Held that:- we find that the reliance for issue of Show Cause Notice dated 26-02-2009 is placed on letter dated 23-01-2009 submitted by Shubham Goldiee Masale (P) Ltd, along with Annexure-A and the said Annexure is enclosed to Show Cause Notice indicates that Shubham Goldiee Masale (P) Ltd, had claimed in the said communication that they were not involved in manufacture of Gulabjamun Mix but they were involved in only trading of the same. The reason for not relying on the said statement that it was not manufacturing Gulabjamun Mix is not forthcoming in the Show Cause Notice nor in any of the earlier Show Cause Notices. Therefore, none of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iii) Milk 87,166,0.3/- (iv) Diabetic 49,352.55/- (v) Gulabjamun mix (only trading) 5,28,45,091.63/- (vi) Shikakai Powder 144,475/- 6,17,96,163/- The Show Cause Notice dated 26-02-2006 stated that it was relied upon document viz. letter dated 23-01-2009 received from Shubham Goldiee Masale (P) Ltd. on 28-01-2008 which is listed as (RUD 04) along with Annexure-A. Annexure-A is the details of the goods cleared during the period from 1st April, 2008 to 30th September, 2008 by Shubham Goldiee Masale and it was stated in the said Annexure A that Shubham Goldiee Masale (P) Ltd. was involved only in trading of Gulabjamun Mix and they did not involve in manufacturing activity of Gulabjamun Mix. The allegations in the Show Cause Notice were that Shubham Goldiee Masale (P) Ltd., were involved in manufacture of above stated Masalas and the said Masalas merit classification under Chapter Heading 21.08/21.06 and chapter note of said chapter provides that re-packing of the goods falling unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 01-03-2005 and in sub heading 2106 after 01-03-2005 and confirmed the demand totaling amounting to ₹ 1,19,73,817/- for the period from 01-12-1996 to 31-05-2006. The Original Authority dropped the demand of duty raised against the goods viz. Rayata Masala, Chaat Masala, Daal Masala, Chana Masala, Dahi Bara Masala, Chatpata Masala, Tea Masala, Muri Masala, classifying them under chapter 09. In addition there was order for demand of interest and imposition of penalty. 3. M/s Shubham Goldiee Masale (P) Ltd., preferred an Appeal No. E/2861/2011 against Order-in-Original No. 18/Commissioner/2011 dated 29-072011. M/s Ashok Grih Udyog Kendra Ltd., preferred an Appeal No. E/2835/2011 against the Order-in-Original 17/Commissioner/2011 dated 29-07-2011. In the appeal of Ashok Grih Udyog Kendra Ltd., there are only two Masalas involved, which are Jaljeera and Dehati Buknoo (Hazmi). In the appeal preferred by Shubham Goldiee Masale (P) Ltd., the goods involved are Jaljeerar, Dehati Buknoo (Hazmi), Milk Masala, Diabetic Masale and Gulabjamun Mix which is involved only in trading and Shikakai Powder. 4. The grounds of appeal are similar in both cases. The grounds, inter-alia, includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduct referred to above and relied upon by the High Court would indicate that most of the items used in the manufacture of Jaljira are nothing else but spices. They are grinded and mixed. When spices are grinded and mixed, it gives rise to a new product, which is a mixed Masala. Different ingredients are used in preparation of Masala after grinding and mixing several ingredients and when they are so grinded they lose their own identity and character and a new product separately known to the commercial world comes into existence. Sales tax is levied on sale of commercial commodities, therefore, individual spices could be termed as different commercial commodities. When they are grinded and mixed they give rise to a separate commercial commodity altogether which could be taxed separately. It is settled law that when one particular item is covered by one specified entry, then the Revenue is not permitted to travel to the residuary entry. If from the records it is established that the product in question could be brought under a specific entry then there is no reason to take resort to the residuary entry. There is no doubt that Jaljira is a drink. The contents of Jaljira is put into wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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