Cess liability on menthol crystals followed the statutory definition of spices, not customs tariff classification.

Menthol crystals exported by the assessee were treated as liable to cess under the Spices Cess Act, 1986 because the statutory definition of spices in the Spices Board Act, 1986 was read as including mint in any form, including mixtures where spice content is predominant. Classification of menthol crystals under Chapter 29 of the Customs Tariff Act, 1975 was held irrelevant to cess liability, as the tariff entry did not control the levy under the cess legislation. The plea based on repeal of the Spices Cess Act, 1986 was rejected because the repeal was not retrospective, and accrued liability remained enforceable.

---

---

Issues: Whether menthol crystals exported by the assessee were liable to cess under the Spices Cess Act, 1986, and whether exclusion of mint from spices classification under the Customs Tariff Act, 1975 prevented such levy.

Analysis: The statutory definition of spices under Section 2(n) of the Spices Board Act, 1986 was treated as covering mint in any form, including mixtures where spice content is predominant. On that basis, mint and menthol crystals were held to fall within the cess regime under the Spices Cess Act, 1986. The classification of menthol crystals under Chapter 29 of the Customs Tariff Act, 1975 was held to be irrelevant for determining cess liability, since the tariff entry did not control the levy under the cess legislation. The plea based on repeal of the Spices Cess Act, 1986 was rejected as the repeal was held not to operate retrospectively.

Conclusion: The assessee was held liable to pay cess on menthol crystals, and the demand was sustained.

Final Conclusion: The appeal failed on merits and the levy of cess on the exported product was upheld.

Ratio Decidendi: Where the substantive cess statute defines spices to include mint, tariff classification under the customs tariff does not override cess liability, and a later repeal does not unsettle accrued liability in the absence of retrospective effect.

---