Classification of ‘Act-II Microwave Popcorn’ which were imported.

PJ/Case Law /2016-17/3267

Case:- AGRO TECH FOODS LTD. VERSUS COMMISSIONER OF CUS., JNCH, NHAWA SEVA

Citation:-2016 (337) E.L.T. 436 (Tri.-Mumbai)

Brief Facts:-The brief facts of the case are thatarise for consideration are appellant herein had imported “Act-II Microwave Popcorn” (imported goods) vide bill of entry No. 625018, dated 25-8-2004 and claimed classification under Customs Tariff Heading No. 2005 80 00. Lower authorities were of the view that this heading may not be applicable which is for only sweet corn while the imported goods are of Popcorn a variety which would fall under CTH 2106 90 99.

Appellant’s Contention:-The appellant submitted that the product imported by the appellant would merit classification under 2008 and not 2005, though it was claimed before the lower authorities. He was submit that the imported goods are other attribute parts of the client. He has drawn attention to the Chapter Heading No. 2008. He has also drawn attention to the HSN for. He has submit that imported goods are ready to use Popcorn mixed with butter and needs only Microwaved and then for direct consumption. He would submit that identical issue came at before the US Customs ruling court and it was held that the imported goods are classifiable under Chapter Heading No. 2008 as other edible parts of plants.

Respondent Contention:-Learned departmental representative on the other hand has drawn attention to the HSN Explanatory note of Chapter 21 and submit that the imported goods are preparation of butter, other fats or oils, and hence correctly classifiable under Chapter Heading No. 2106 as food preparations not elsewhere specified or included. . Revenue is claiming classification under Chapter Heading No. 2106, while the assessee is claiming the classification under Chapter Heading No. 2008, though before the lower authorities in the bill of entry they had claimed classification under Chapter Heading No. 2005.

Reasoning of Judgment:-In order to settle the classification dispute, it is required that the competing Chapter Headings needs to be reproduced.

2008		Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included
2008 99 99	----	Other	kg.	30%	-
2106		Food preparation not elsewhere specified or included
2106 90 99	----	Other	kg.	150%	-

On perusal of records it is found that the Revenue’s claim of classification of the product under 2106 seems to be without any basis as the said Chapter Heading 2106 talks about food preparation not elsewhere specified or included. To our mind the said entry of 2106 is a general residual entry which would cover the classification of the product if it cannot be classified anywhere else. We find that the imported goods are prepared or preserved or used for making of Popcorn. It cannot be disputed that the goods are edible part of the plant. In our view, if it has to be accepted as edible part of the plant, the correct classification would be under Chapter Heading No. 2008. We find that even the HSN Explanatory Notes of Chapter 21 as well as the Customs Tariff in respect of Chapter Heading No. 21, talks primarily about the products which are generally preparation not elsewhere specified or included the Chapter Heading No. 2106, in Tribunal’s view this would apply in respect of Namkins or other items, which are not classifiable under any other heading. We also find that evidence from records, that importer appellant is a manufacturer of very same product in India and classified the same on Central Excise Tariff under Heading No. 2008 11 90 and discharging appropriate rate of duty, which has been accepted by the Central Excise Department. If the Central Excise Department who are accepting the classification of said product under 20.08 and also accepting the duty payment, of the same product, we do not find any reason not to extend the said classification under Customs Tariff to the imported goods. In Tribunal’s considered view, it has to be held that the impugned order is unsustainable and the classification of the imported goods would fall under Chapter Heading No. 2008 11 90.

In view of the above, the appeal is allowed.

Decision:-Appeal allowed.

Comment:-The crux of the case is thatwhen the revenue authorities have accepted the classification of the product under chapter 2008 1190 in Central Excise Laws, the same product cannot be classified under different chapter heading while doing assessment under Customs Laws. Therefore, the product when imported into India will be classifiable under chapter 2008 1190.

Prepared by:- Bharat Chouhan

Comments

PJ/Case Law /2016-17/3267

Post a Comment

Query