Tariff classification of sugar confectionery: FUNDA fell outside Chapter 21's residuary entry and was treated under Chapter 17.

The product FUNDA, containing nearly 99% sugar and similar to Glucose D covered by the Board's circular, was treated as classifiable under Chapter 17 rather than Chapter 21 of the Central Excise Tariff. Chapter 21.06 was applied as a residuary heading only where goods are not otherwise classifiable, and the product did not fit the illustrative items in Note 6 such as Misthans, Mithai, Namkeens, Mixtures, Bhujia or Chabena. Applying ejusdem generis, the product could not be brought within Chapter 21.06, so the appeal was allowed with consequential relief.

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Issues: Whether the product FUNDA was classifiable under Chapter 17 of the Central Excise Tariff Act, 1985 as sugar confectionery, or under Chapter 21 as a food preparation under the residuary entry.

Analysis: The product was found to contain nearly 99% sugar and to be very similar to Glucose D, which was covered by the Board's circular under Chapter 17. The lower authorities had not examined this similarity adequately. Chapter 21.06 is a residuary heading and can be applied only when the goods are not classifiable elsewhere. On the examples listed in Note 6 to Chapter 21, the product did not fall within the class of Misthans, Mithai, Namkeens, Mixtures, Bhujia or Chabena. Applying the principle of ejusdem generis, the product could not be brought within Chapter 21.06.

Conclusion: FUNDA was held not classifiable under Chapter 21 and the appeal was allowed with consequential relief.

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