2008 (8) TMI 82 - AT - Central Excise

Poha classified under Chapter 11, Tribunal rules in favor of appellants, overturns duty demand

The Tribunal ruled in favor of the appellants in the case concerning the classification of 'Poha' under the Central Excise Tariff. The dispute revolved ... Classification of a product called ‘Poha’/ ‘avalakki’– a particular form of rice - interpretation of Tariff entries – department’s plea that the item would be covered under Chapter19: “preparations of cereals, flour, starch or milk; pastrycooks’ products, etc.”, is not acceptable - Held that where there is no process beyond that which is mentioned in Chapter 11, the item cannot be classified under Chapter 19 – held that item is classifiable under Chapter 11, as contended by assessee Issues:Classification of the product 'Poha' under Central Excise Tariff - Chapter 10, Chapter 11, or Chapter 19.Analysis:Issue 1: Correct Classification of 'Poha'The main issue in the appeals was the correct classification of the product 'Poha' under the Central Excise Tariff. The appellants argued for classification under Chapter 10 or Chapter 11, while the Revenue contended it should be classified under Chapter 19. The Revenue argued that 'Poha' falls under Chapter 19 as 'preparations of cereals, flour, starch or milk.' The manufacturing process of 'Poha' was detailed, emphasizing it as a prepared food under Chapter 19. The Revenue cited the Tribunal's decision in a previous case and upheld the duty demand. The appellants argued that 'Poha' is a form of rice and should be classified under Chapter 10 or 11. They referenced a Larger Bench decision that clarified the classification criteria between Chapter 11 and 19. The appellants highlighted that 'Poha' does not involve cooking, distinguishing it from a previous case. They also argued that 'Poha' requires further cooking before consumption, similar to the classification of fryums as undercooked items. The appellants stressed that 'Poha' should not be considered a cooked food and should be classified under Chapter 11. The Tribunal analyzed the manufacturing process and previous decisions, concluding that 'Poha' does not undergo processes beyond Chapter 11 criteria, supporting its classification as a particular form of rice. The Tribunal found no merit in the Revenue's arguments, set aside the impugned orders, and allowed the appeals.In conclusion, the Tribunal's judgment focused on the classification of 'Poha' under the Central Excise Tariff, emphasizing the distinction between Chapter 10, Chapter 11, and Chapter 19. The detailed analysis considered the manufacturing process, previous decisions, and the nature of 'Poha' as a product, ultimately ruling in favor of the appellants based on the classification criteria and lack of merit in the Revenue's contentions.