Classification of snack products under tariff law turns on extrusion rather than cereal swelling, with savoury products placed under Sub-heading 19059030.

Products containing cereals together with oils, spices and salt were held classifiable as extruded or expanded savoury or salted products under Sub-heading 19059030, because Heading 1904 applies only where goods are obtained exclusively by swelling or roasting of cereals or cereal products. The manufacturing process, which involved blending, extrusion, drying, seasoning and packing, showed that extrusion was the dominant process rather than cereal swelling or roasting. Reliance on the tariff scheme, HSN Explanatory Notes and earlier decisions supported this classification, so the Revenue's appeal failed and the classification under Heading 1904 did not survive.

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Issues: Whether the respondent's products, namely CRAX Corn Rings and NATKHAT Wheat Puffs, were correctly classifiable under Heading 1904 of the Central Excise Tariff Act, 1985 or under Sub-heading 19059030 as extruded or expanded savoury or salted products.

Analysis: The products were found to contain ingredients beyond cereals or cereal products exclusively, including oils, spices and salt. Their manufacture involved blending, extrusion, drying, seasoning and packing, and the main process was extrusion rather than swelling or roasting of cereals. The relevant HSN Explanatory Notes and the tariff scheme showed that Heading 1904 applies only where the goods are obtained by swelling or roasting of cereals or cereal products exclusively, while Sub-heading 19059030 covers extruded or expanded savoury or salted products. The classification adopted by the Commissioner (Appeals) was also supported by the earlier decisions relied upon in the order, including the view affirmed by the Supreme Court in the Frito Lay matter.

Conclusion: The products were held to be classifiable under Sub-heading 19059030 and not under Heading 1904, and the Revenue's appeal failed.

Final Conclusion: The classification dispute was resolved in favour of the assessee, and the demand under Heading 1904 did not survive.

Ratio Decidendi: Goods are not classifiable under Heading 1904 unless they are obtained by swelling or roasting of cereals or cereal products exclusively; extruded or expanded savoury or salted products fall under Sub-heading 19059030.

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