Tariff classification of brown sugar turns on Chapter Note 2 and specific sugar entry, not food-industry residue.

Brown sugar with sucrose content above 90% falls within the specific tariff description of sugar under Chapter 17 of the Central Excise Tariff Act, because Chapter Note 2 treats as sugar any form of sugar with sucrose content exceeding 90% of the material dried to constant weight. Chapter 23, which covers residue and waste from the food industry, does not apply where the product answers the specific sugar entry. The laboratory test supported classification under Chapter 17, and the earlier relied-on decision was distinguishable. On that basis, the product was held classifiable under Chapter 17, the order of the Commissioner (Appeals) was set aside, and the demand and penalty were restored.

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Issues: Whether brown sugar having sucrose content of more than 90% and sold in the market was classifiable under Chapter 17 of the Central Excise Tariff Act, 1985 or under Chapter 23 as residue of the food industry.

Analysis: Chapter 23 covers residue and waste from the food industry, whereas Chapter 17 specifically covers sugar. Chapter Note 2 to Chapter 17 defines sugar to include any form of sugar whose sucrose content, expressed as a percentage of the material dried to constant weight, exceeds 90%. The laboratory test showed that the brown sugar in question had sucrose content of more than 90%. The earlier decision relied upon by the lower appellate authority dealt with a different question and did not govern the present classification dispute.

Conclusion: The brown sugar was correctly classifiable under Chapter 17 and not under Chapter 23, and the Revenue's appeal succeeded.

Final Conclusion: The order of the Commissioner (Appeals) was set aside and the adjudicating authority's demand and penalty were restored.

Ratio Decidendi: For tariff classification, a product answering the specific chapter description and chapter note for sugar must be classified under Chapter 17, and not under the residuary or waste-entry for food-industry residue under Chapter 23.

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