Cocoa liquor classification under Heading 1804.00 fails where the product is not a food preparation containing cocoa.

Cocoa liquor was examined against Heading 1804.00 and the related HSN notes, and was treated as synonymous with cocoa paste. The tariff entry was found to require a "preparation", whereas the product consisted only of cocoa substance and did not answer the description of an "other food preparation containing cocoa". On that basis, it was held not classifiable under Heading 1804.00 and therefore not excisable; the question of marketability was not examined. The duty demand could not be sustained on the footing that cocoa liquor fell within the cited tariff entry, and the appeals were allowed.

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Issues: Whether cocoa liquor was excisable and covered under Heading 1804.00 as "other food preparation containing cocoa".

Analysis: The product was examined against the tariff description and the related HSN notes. Cocoa liquor was treated as synonymous with cocoa paste, and the tariff heading relied upon by the department was found to require a "preparation". The reasoning accepted that the product consisted only of cocoa substance and did not answer the tariff description of a food preparation containing cocoa. In view of this conclusion, the question of marketability was not examined.

Conclusion: The product was held to be not excisable and not classifiable under Heading 1804.00, in favour of the assessee.

Final Conclusion: The duty demand could not be sustained on the premise that cocoa liquor fell within the cited tariff entry, and the appeals were allowed.

Ratio Decidendi: A product is not classifiable as an "other food preparation containing cocoa" unless it is in the nature of a preparation answering that tariff description.

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