Exemption notification interpretation defeats total pre-deposit waiver where a food supplement is not covered as a food mix.

Exemption under Notification No. 3/2006-C.E. was held not to extend to a product described as a food supplement because the notification covered only all kinds of food mixes, including instant food mixes. Classification under the same chapter sub-heading was found insufficient where the product description in the notification did not match the goods manufactured. On that basis, the Tribunal found no prima facie case for total waiver of pre-deposit of duty. The appellant was directed to deposit the duty demand, while waiver of the balance amount towards interest and penalty was granted pending disposal of the appeal.

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Issues: Whether the appellant had made out a prima facie case for total waiver of pre-deposit in respect of duty, interest and penalty, in view of the exemption claimed under Notification No. 3/2006-C.E. for goods described as all kinds of food mixes including instant food mixes.

Analysis: The claim rested on the footing that the product, being a food supplement, fell within the expression used in the exemption notification. The notification, however, specifically referred to all kinds of food mixes including instant food mixes, and not to food supplements. Mere classification under the same chapter sub-heading was held insufficient to extend the exemption where the product description in the notification did not cover the goods manufactured by the appellant. In these circumstances, the Tribunal found no prima facie basis for complete waiver of the duty demand.

Conclusion: The appellant was not entitled to total waiver of pre-deposit, and was directed to deposit the duty amount demanded, while waiver of the balance amount towards interest and penalty was granted till disposal of the appeal.

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