2007 (4) TMI 17 - SC - Central Excise

Appeals dismissed in dispute over classification of non-alcoholic beverage concentrates under SH 10 of Chapter Heading 33.02

COMMISSIONER OF C. EX., PUNE Versus COCA-COLA INDIA PVT. LTD.

The SC dismissed the appeals in a dispute over classification of non-alcoholic beverage bases/concentrates, where revenue sought classification under SH ... Classification of goods - Revenue contended that that the appellant product (non-alcoholic beverage bases or concentrates) are classifiable under SH 10 of Chapter Heading 33.02 as has been claimed by respondent but rejected by the tribunal - HELD THAT:- It is stated by the learned counsel for the assessee that the excise duty paid and the Modvat credit availed under Notification No. 5/94-C.E.(N.T.), dt. 1-3-1994 were identical and therefore consequences of payment of excise duty after availing Modvat credit was revenue neutral. The appeals are dismissed leaving the question of law open. Issues: Classification of non-alcoholic beverage bases/concentrates under Chapter Heading 33.02Analysis:The Supreme Court addressed the appeals filed by the Revenue against the Customs, Excise and Gold (Control) Appellate Tribunal's order, which classified the 'non-alcoholic beverage bases or concentrates' under sub-heading 10 of Chapter Heading 33.02. The Tribunal had set aside the Commissioner (Appeals)'s order and upheld the classification claimed by the respondent assessee.The respondent, a company previously known as M/s. Britoo Food Company Limited and later renamed Coca Cola India Limited, manufactured 'Non-alcoholic beverages bases/concentrates' used by their bottlers to produce beverages like Coca-Cola, Thumps Up, Gold Spot, Limca, and Citra. The dispute centered around the classification of these products under Chapter Heading 33.02.The assessee argued that the duty payable on the beverage bases/concentrates was modvatable and had no revenue implication since the duty paid and Modvat credit availed were identical. The learned counsel for the assessee contended that the payment of excise duty after availing Modvat credit was revenue neutral.Considering the stand taken by the assessee and their counsel, the Supreme Court dismissed the appeals, leaving the question of law open. No costs were awarded in the judgment. However, the Court granted liberty to the appellant-Revenue to approach the Court if the counsel's submission was found to be incorrect upon verification.