Sugar confectionery exemption applies to bubble gum where tariff separately classifies chewing gum and the products are distinct.

Bubble gum manufactured as sugar confectionery fell within the exemption for sugar confectionery under Notification No. 6/2002-C.E. because the tariff treated sub-heading 1704.90 as the residual category for sugar confectionery other than chewing gum, while chewing gum was separately classified under 1704.10. The tariff structure and the recognised distinction between bubble gum and chewing gum showed that bubble gum could not be reclassified as chewing gum to deny the exemption. On that basis, bubble gum was entitled to the benefit of the notification.

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Issues: Whether bubble gum manufactured and cleared by the appellant was entitled to exemption under S.No. 247 of Notification No. 6/2002-C.E. as sugar confectionery under Heading 1704.90.

Analysis: The exemption entry covered sugar confectionery excluding white chocolate, not containing cocoa, under sub-heading 1704.90. The tariff scheme treated 1704.90 as the residual sub-heading for sugar confectionery other than chewing gum, while chewing gum was separately and specifically classified under 1704.10. The distinction between bubble gum and chewing gum was supported by the tariff structure as well as the Supreme Court's recognition that the two are different products. On that basis, bubble gum could not be treated as chewing gum for the purpose of denying the claimed exemption.

Conclusion: Bubble gum was not classifiable as chewing gum for this exemption entry and was entitled to the benefit of Notification No. 6/2002-C.E.

Ratio Decidendi: Where a tariff notification grants exemption to sugar confectionery under a residual sub-heading and the tariff separately classifies chewing gum, a product that is distinct from chewing gum cannot be denied the exemption by treating it as chewing gum.

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