Chapter 21 classification upheld for namkeen-style snack products; cereal-based Heading 19.04 rejected.

Products described as "Cheetos Masala Balls" and "Cheetos X & O" were held classifiable under sub-heading 2108.99 because they contained cereal ingredients as well as gram flour, wheat fibre, edible oil and seasoning, and were manufactured by an extrusion and cooking process. Note 10 to Chapter 21 treated namkeens and similar preparations as falling within Chapter 21 irrespective of ingredients, so classification under Heading 19.04 as prepared foods obtained by swelling or roasting of cereals was excluded. The disputed goods were therefore held to be edible preparations under Chapter 21, and the duty and penalty confirmation was set aside.

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Issues: Whether the products "Cheetos Masala Balls" and "Cheetos X & O" were classifiable under sub-heading 1904.10 as prepared foods obtained by swelling or roasting of cereals or cereal products, or under sub-heading 2108.99 as edible preparations not elsewhere specified or included.

Analysis: The products contained not only cereal ingredients but also gram flour, wheat fibre, edible oil and seasoning. Note 10 to Chapter 21 treated products commonly known as namkeens and similar preparations as falling within the Chapter 21 headings irrespective of ingredients. The goods were also manufactured by an extrusion and cooking process, and the material was not limited to cereals or cereal products alone. In these circumstances, classification under Heading 19.04 was excluded and the broader Chapter 21 entry was attracted.

Conclusion: The products were correctly classifiable under sub-heading 2108.99 and not under sub-heading 1904.10. The appeal succeeded in favour of the assessee.

Final Conclusion: The impugned order confirming duty and penalty was set aside, and the disputed products were held to fall under Chapter 21 classification.

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