2019 (5) TMI 1429 - AT - Central Excise

Tribunal Upholds Classification of 'Potato Flakes' under Chapter 20

Commissioner of Customs & Central Excise, Noida-I Versus Merino Industries Ltd.

The Tribunal upheld the Commissioner (Appeals) decision, affirming the classification of 'Potato Flakes' under Chapter 20 of the Central Excise Tariff ... Classification of goods - Potato Flakes - while the assessee has claimed the classification under Chapter 20, Revenue seeks to classify the same under Chapter 11 of the Central Excise Tariff Act - HELD THAT:- Commissioner (Appeals) vide his impugned order set aside the order by relying upon the earlier order of the Tribunal in the case of same assessee, accepting the assessee’s stands of classification under Chapter No.20 - there is no justifiable reasons to interfere in the impugned order of Commissioner (Appeals) - appeal dismissed - decided against Revenue. Issues: Classification of goods under Central Excise Tariff ActClassification of Potato Flakes:The dispute in the present appeal revolves around the classification of 'Potato Flakes' under the Central Excise Tariff Act. While the assessee claimed classification under Chapter 20, the Revenue sought to classify it under Chapter 11. The Original Adjudicating Authority classified the 'Potato Flakes' under Sub-heading No. 1105 20 00, contrary to the assessee's claim of Chapter Heading No. 20 04 10 00, resulting in a duty demand of approximately &8377;1.40 crores. The Commissioner (Appeals) set aside the order, relying on a previous Tribunal order in favor of the assessee's classification under Chapter No. 20. The Revenue did not dispute the previous Tribunal order but argued that it was not accepted and an appeal was filed before the Supreme Court, which was admitted without a stay of operation of the Tribunal order.Judgment Analysis:The Tribunal, consisting of SMT. ARCHANA WADHWA and MR. ANIL G. SHAKKARWAR, upheld the Commissioner (Appeals) decision, emphasizing that in the absence of a stay order, the Tribunal's previous decision in the same assessee's case must be followed. The Tribunal noted that the Revenue's appeal lacked justifiable reasons to interfere with the impugned order of the Commissioner (Appeals). Consequently, the Revenue's appeal was rejected, affirming the classification of 'Potato Flakes' under Chapter 20 as per the Tribunal's earlier decision. The judgment highlights the importance of following Tribunal orders in the absence of a stay, ensuring consistency in classification decisions under the Central Excise Tariff Act.