2009 (3) TMI 746 - AT - Central Excise

CESTAT Upholds Classification of Chocolate-Coated Goods as Waffles, Not Biscuits

The CESTAT Mumbai upheld the lower Appellate Authority's classification of goods as waffles/wafers coated with chocolate under CSH 1905.31, rejecting the ... Stay/Dispensation of pre-deposit The appellate tribunal CESTAT, Mumbai, consisting of S/Shri P.G. Chacko and A.K. Srivastava, heard a case involving a classification dispute. The lower Appellate Authority classified the goods in question as waffles/wafers coated with chocolate under CSH 1905.31, imposing a penalty and confirming a demand for differential duty against the appellants. The appellants argued that the product should be classified as biscuits under CSH 1905.11. A sample of the product was displayed, showing oval-shaped brown solids coated with chocolate over white-colored pieces, originally classified as biscuits by suppliers. The Revenue contended that the commodity should be classified as waffles/wafers coated with chocolate, supported by the Chief Chemist's opinion. The tribunal, after considering the submissions, noted the thin distinction between biscuits and waffles/wafers but found the common parlance criterion crucial for classification. Biscuits, cakes, and pastries were categorized separately from waffles and wafers, with chocolate use being a key factor for the latter. The tribunal concluded that the appellants failed to establish a strong case against the duty and penalty, directing a 50% pre-deposit of the duty amount within four weeks. Compliance was to be reported by 9-4-09, with waiver of pre-deposit and stay of penalty and duty recovery upon due compliance. The judgment was pronounced in court.