Infant-use food classification and limitation turned on essential intended use and known facts, defeating the extended period.

Food preparations put up in unit containers for infant use were classified by their essential intended use, not by the fact that they were supplied through industrial consumers for further processing, so Chapter Heading 1901.11 applied and not 1901.19. The extended period of limitation was also not invokable because regular classification declarations had been filed, the department had queried and verified the classification, and the relevant facts were already within departmental knowledge; suppression was therefore not established. On that basis, the demand could not survive and the classification and limitation issues were decided in favour of the appellant.

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Issues: (i) Whether the goods were classifiable under Chapter Heading 1901.11 or Chapter Heading 1901.19; (ii) Whether the extended period of limitation was invokable.

Issue (i): Whether the goods were classifiable under Chapter Heading 1901.11 or Chapter Heading 1901.19.

Analysis: The tariff entry distinguished between food preparations put up in unit containers for infant use and other food preparations. The goods were admittedly food preparations meant ultimately for infant use, and the fact that they were supplied through industrial consumers did not alter their essential character for infant use. The intent of the entry was held to cover goods meant for infant use even where they were routed through another manufacturer for further use.

Conclusion: The goods were held to be correctly classifiable under Chapter Heading 1901.11, and not under Chapter Heading 1901.19, in favour of the appellant.

Issue (ii): Whether the extended period of limitation was invokable.

Analysis: Regular classification declarations were filed, the department had queried and verified the classification, and the facts regarding the nature of the goods and the industrial buyers were within the department's knowledge. In these circumstances, suppression of material facts was not established and the extended period could not be invoked.

Conclusion: The extended period of limitation was held not invokable, in favour of the appellant.

Final Conclusion: The demand could not survive, and the appeal succeeded on limitation while the classification issue was also decided in favour of the appellant by the majority.

Ratio Decidendi: Where goods are food preparations put up in unit containers for infant use, their classification is determined by their essential intended use and not merely by the fact that they are supplied to industrial consumers for further processing; and where the department is already aware of the relevant facts, the extended period of limitation cannot be invoked.

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