9911796707
TMI Blog2009 (1) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... at their product which was marketed as “chilli vinegar” could be classified as a preparation of green chilli. - E/2814-2815/2003-MUM - A/99-100/2009-WZB/C-II/(EB), - Dated:- 21-1-2009 - S/Shri P.G. Chacko, Member (J) and K.K. Agarwal, Member (T) Shri Kishori Lal, SDR, for the Appellant. Shri V.R. Kelkar, Consultant, for the Respondent. [Order per : P.G. Chacko, Member (J)].- The respondents in these appeals of the Revenue were engaged in the manufacture of food items such as Soups, Noodles, Spices etc. during the material period. During the period from April, 1996 to February, 1997, they had paid duty at the rate of 8% on their product 'Chilli Vinegar' classified under heading 20.01 (sub heading 2001.00) of the Schedule to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en the assessee intended to sell the goods as vinegar only as evidenced by the manner in which the goods was described on its label. 'Chili Vinegar' was prepared by mixing Acetic Acid with water and adding thereto one green chilli. Dilute Acetic Acid was a substitute for vinegar. The green chilli was added as favouring agent only. On these facts, according to the learned SDR, HSN Explanatory Notes under heading 22.03 would support classification as claimed by the Revenue. The learned SDR also relied on Rule 3(b) of the Rules for the Interpretation of the CETA Schedule. On the other hand, the learned Consultant reiterated the reasoning of the lower appellate authority. 3. After giving careful consideration to the submissions, we find tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .... 4. We are inclined to accept the argument of the learned SDR inasmuch as (a) aqueous acetic acid dilution is undisputedly a substitute for vinegar and (b) its essential character is not lost on account of adding one green chilli. It is also found that the assessee themselves intended to market the product as vinegar. The HSN Explanatory Notes indicate that vinegar flavoured with spices would remain classified under heading 22.03. Moreover, the respondent has failed to show that their product which was marketed as "chilli vinegar" could be classified as a preparation of green chilli. 5. In the result, the classification ordered by the lower appellate authority in respect of 'chilli vinegar' is set aside and the product is held t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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