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TMI Blog2018 (7) TMI 685X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi Vs. Connaught Plaza Restaurant (P) Ltd [2012 (12) TMI 149 - SUPREME COURT] has held that the definition under the Prevention of Food Adulteration Act cannot be utilized to decide the tariff classification - also, the Food Safety and Standards Act, 2006, through its section 97 has appealed 8 acts including the Prevention of Food Adulteration Act, 1954, which the appellant sought to rely upon. Even otherwise, the definition under the Prevention of Food Adulteration Act cannot be relied upon to decide the classification under Excise Tariff. Whether the material in question is chocolate or cocoa? - Held that:- As far as the classification of the material in question is concerned, Chapter 19 does not deal with the definition of chocolat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Respondent ORDER [ Order Per : P. V. Subba Rao ] 1. These three appeals involve the common issue related to the common appellant and hence are being disposed of together. (i) Appeal No. E/611/2009 arising out of Order-in-Appeal No.12/2009 (H-IV) CE dated 20.03.2009. (ii) Appeal No. E/1645/2010 arising out of Order-in-Appeal No.49/2010 (H-IV) CE dated 28.04.2010 (iii) Appeal No. E/1770/2011 arising out of Order-in-Appeal No.45/2011 (H-IV) CE dated 27.04.2011 2. Heard both sides and perused records. 3. The brief facts of the case after filtering out unnecessary details are that appellant herein are manufacturers of wafers with a cream layer made out of cocoa powder, sugar, flavour, emulsifiers and hydro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er hand argues that as per the Prevention of Food Adulteration Act, 1954, the chocolates cannot contain any vegetable fat other than cocoa butter. In their case, they are not using cocoa butter but are using hydrogenated vegetable fats, emulsifiers, etc., in addition to cocoa powder, sugar and flavour. Therefore the layer contained in the wafers is not of chocolate but of cocoa. In fact, they cannot market it as wafer containing chocolate in view of the specific prohibition under the Prevention of Food Adulteration Act. Since they cannot market the wafers as the ones containing chocolate their wafers should not be classified so but should be classified as other wafers and should be charged to the central excise duty accordingly. 5. Show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The case of the Cadbury in 2017 is different in as much as it dealt with the classification of the white chocolate and not containing preparation of cocoa powder. 8. The learned Departmental Representative (DR) on the other hand vehemently supported the arguments made in the Order-in-Original and Order-in-Appeal and said that classification of the goods must be based on the Central Excise tariff with some reliance being placed on the explanatory notes of the HSN. They cannot be classified based on the definitions given in other laws as the objectives of the different statutes are different and so are the statutory definitions therein. Considering arguments put forth by both sides and after perusal of records, we find in the case of Bri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T 321 (SC), has dealt with this specific issue and held as follows in Para No. 43: 43. We are unable to persuade ourselves to agree with the submission. It is a settled principle in excise classification that the definition of one statute having a different object, purpose and scheme cannot be applied mechanically to another statute. As aforesaid, the object of the Excise Act is to raise revenue for which various goods are differently classified in the Act. The conditions or restrictions contemplated by one statute having a different object and purpose should not be lightly and mechanically imported and applied to a fiscal statute for non-levy of excise duty, thereby causing a loss of revenue. The provisions of PFA, dedicated to food a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning chocolate and other wafers. Chocolate is defined in the explanatory notes to HSN in 18.06 which reads as follows: 18.06 CHOCOLATE AND OTHER FOOD PREPARATIONS CONTAINING COCOA 1806.10 Cocoa powder, containing added sugar or other sweetening matter 1806.20 Other preparations in blocks or slabs weighing more than 2 Kg or in liquid, paste, powder, granular or other bulk form in containers or immediate packings, of a content exceeding 2 kg. - Other, in blocks, slabs or bars 1806.31 Filled 1806.32 Not filled 1806.90 Other Chocolate is composed essentially of cocoa paste and sugar or other sweetening matter, usually with the addition of flavouring and cocoa butter; in some cases, coco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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