2015 (8) TMI 343 - AT - Central Excise

Appellant wins duty exemption dispute for bubble gum classification under updated tariff structure

Perfetti Van Melle India Pvt Ltd Versus CCE-Delhi-III

Perfetti Van Melle India Pvt Ltd Versus CCE-Delhi-III - 2015 (324) E.L.T. 185 (Tri. - Del.) Issues:Interpretation of duty exemption under notification no. 6/02CE for bubble gum from 25/4/2005 to 28/2/2006.Analysis:The dispute revolves around whether bubble gum was eligible for duty exemption under notification no. 6/02CE during the period from 25/4/2005 to 28/2/2006. The notification prescribed a concessional rate of duty for 'sugar confectionary (excluding white chocolate) not containing cocoa' falling under sub-heading 1704.90. The contention arises from changes in the Central Excise Tariff structure, specifically the classification of bubble gum under sub-heading 170490. Prior to 28/2/2005, bubble gum was not covered under sub-heading 170490, but with the introduction of the 8 digit tariff from 28/2/2005, bubble gum fell under this sub-heading. The crux of the matter is whether the notification should be aligned with the old tariff structure or the revised one post-28/2/2005.The appellant argued that post-28/2/2005, bubble gum was covered under sub-heading 170490, making it eligible for the duty exemption under notification no. 6/02CE. They relied on the distinction between 'chewing gum' and 'bubble gum' as separate commodities, as established in previous Tribunal judgments. The appellant contended that the notification should be read in conjunction with the revised tariff structure post-28/2/2005, where bubble gum was included under sub-heading 170490.On the other hand, the department maintained that the notification should be interpreted based on the old tariff structure, where bubble gum was not covered under sub-heading 170490. They argued that despite the changes in the tariff post-28/2/2005, the notification should be aligned with the pre-existing classification of goods.The Tribunal analyzed the changes in the tariff structure and the wording of the notification. It concluded that post-28/2/2005, bubble gum fell under sub-heading 170490, making it eligible for the duty exemption under notification no. 6/02CE. The Tribunal emphasized that the notification should be interpreted in conjunction with the revised tariff structure, where bubble gum was included under sub-heading 170490. Additionally, the Tribunal cited the subsequent amendment in a later notification specifically excluding bubble gum, further supporting the eligibility of bubble gum for the duty exemption during the disputed period.In light of the above analysis, the Tribunal found in favor of the appellant, setting aside the impugned order and allowing the appeal.