Carbonated fruit juice beverage classification upheld under aerated waters heading, not the separate fruit juice based drinks entry.

Carbonated fruit juice beverages were treated as classifiable under Heading 2202 10 20 / 2202 10 90 because the products were found to be principally carbonated, water-based beverages marketed with fruit juice, and consistent with the FSSAI description of carbonated beverages with fruit juice. The authority distinguished the separate entry for fruit pulp or fruit juice based drinks under 2202 99 20, noting that the fruit content was below the level relied on for that classification and that the cited larger bench ruling was not applicable. The advance ruling on classification was therefore upheld.

---

---

Issues: Whether carbonated fruit juice beverages were classifiable under the heading for waters and aerated waters or under the heading for fruit pulp or fruit juice based drinks; and whether the appellate authority should interfere with the advance ruling classifying the products under heading 2202 10 20 / 2202 10 90.

Analysis: The products were examined with reference to the tariff structure of Heading 2202, the HSN explanatory notes, the Food Safety and Standards Regulations, and the composition of the beverages. The tariff scheme distinguishes waters, including aerated waters, containing added sugar or flavouring from other non-alcoholic beverages, and separately provides for fruit pulp or fruit juice based drinks under 2202 99 20. The authority found that the impugned products contained carbonated water as the dominant base, were marketed as carbonated beverages with fruit juice, and answered the FSSAI description of carbonated beverages with fruit juice rather than fruit juice based drinks. It also held that the cited larger bench decision did not assist the appellant because the fruit content in the present products was lower than the level treated there as fruit juice based drinks. The fitment committee materials were treated as supportive of the classification under the aerated waters entry.

Conclusion: The classification under heading 2202 10 20 / 2202 10 90 was upheld and the plea for classification under 2202 99 20 was rejected.

Final Conclusion: The advance ruling was left undisturbed and the appeal failed.

Ratio Decidendi: Where a carbonated beverage is principally a water-based aerated product and the fruit content is below the threshold treated as fruit juice based drink, it is classifiable under the aerated waters entry rather than the separate entry for fruit pulp or fruit juice based drinks.

---