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TMI Blog2019 (1) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... red them under 'Bilas" Brand Pan Sughandh by classifying them under Chapter sub-heading 2008 9999 at nil rate of duty by availing the exemption under Notification No. 03/2006-CE dated 01/03/2006. The department during the scrutiny of records noticed that the ingredients namely Semar Musra, Amla, Bel Pulp, Mulethi, Mixed Spices, Natural and Artificial Flavours and Flavouring Substances and Menthol have been used in their finished goods. All the ingredients were cleaned, grinded, blended and then packed and no other process is being adopted. The department termed their product as 'Churan for Pan' classifiable under Tariff Heading 2106 9070 attracting excise duty @ 16% as it was a preparation of fruits and vegetables used as refres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel appearing on behalf of the appellant submits that product is in the form of ready to consume edible mixture of fruits, nuts and other edible parts of the plant prepared. Contain sugar, artificial flavour of menthol; therefore, it is not a pan masala. He further submits that the observation of the department is based on the chemical examiner report, which is referred in the SCN wherein the chemical examiner has opined that the product is end product for flavouring of pan is classifiable under the heading 2106. He submits that the chemical examiner has no authority to give end use for classification. The product is consumed as such and not with pan or any other specific substance. The observation of the Appellate Commissioner is that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that the issue to be decided in the present case is classification of the product namely, „Bilas‟ Pan Sughandh. The department has termed the product as Churan for Pan classifiable under tariff heading 2106 9070, whereas the appellant claimed under 2008 9999. Both the tariff entries are reproduced below: Chapter 21: Miscellaneous Edible Preparations Tariff Item Description of goods Unit Rate of Duty 2106 FOOD PREPARATIONS NOT ELSEWHERE SPECIFIED OR INCLUDED 2106 10 00 -Protein concentrates and textured protein substances kg. 16% 2106 90 -Other: -Soft drink concentrates: 2106 90 11 -Sharbat kg. 16% 2106 90 19 -Other kg. 16% 2106 90 20 -Pan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fruit: 2008 30 10 -Orange kg. 16% 2008 30 90 -Other kg. 16% 2008 40 00 -Pears kg. 16% 2008 50 00 -Apricots kg. 16% 2008 60 00 -Cherries kg. 16% 2008 70 00 -Peaches, including nectarines kg. 16% 2008 80 00 -Strawberries kg. 16% -Other, including mixtures other than those of sub-heading 2008 19 : 2008 91 00 -Palm hearts kg. 16% 2008 93 00 -Cranberries (Vaccinium macrocarpon, Vaccinium Oxycoccos Vaccinium vitis-idaea) kg. 16% 2008 97 00 -Mixtures Kg. 16% 2008 99 -Other: -Squash : 2008 99 11 -Mango kg. 16% 2008 99 12 -Lemon kg. 16% 2008 99 13 -Orange kg. 16% 2008 99 14 -Pineapple kg. 16% 2008 99 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeals) has given detailed findings that how the product is classifiable under Chapter heading 2106 9070. The finding of the Ld. Commissioner (Appeals) is reproduced below: 6. As regard penalty, we find that it is admitted by the Ld. Commissioner (Appeals) that there is no allegation of suppression of fact or fraud in the SCN despite that the penalty under Rule 25 which is equal to the duty was upheld. The penalty under Rule 25 is subject to section 11AC, since there is no charge of suppression or fraud or mis-declaration, penalty under Rule 25 can also not be imposed. Moreover, in the present case issue involved is interpretation of classification of goods for this reason also penalty is not imposable. Accordingly, we set aside the penal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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