Tribunal Confirms "Appy Fizz" as Fruit Juice Drink

The Tribunal upheld the classification of "Appy Fizz" as a fruit juice based drink under sub-heading No. 22029020 of the Central Excise Tariff, based on the Ministry's certificate confirming 23% apple juice content. The Revenue's appeal, seeking classification as aerated water under sub-heading No. 22021010, was dismissed as the Tribunal found no error in the initial classification by the Commissioner (Appeals).

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Issues:
Classification of product "Appy Fizz" under Central Excise Tariff - whether under sub-heading No. 22029020 as a fruit juice based drink or under sub-heading No. 22021010 as aerated water.

Analysis:
The Revenue appealed against the Commissioner (Appeals) order classifying "Appy Fizz" under sub-heading No. 22029020 of the Central Excise Tariff as a fruit juice based drink. The Revenue contended that the product should be classified under sub-heading No. 22021010 as aerated water, citing the chemical examiner's report and Ministry of Food and Processing Industries opinion. They argued that since the product is aerated, it should be considered as flavoured aerated water, supported by the HSN Explanatory notes. However, the respondent argued that the product contains 23% of apple juice as per the Ministry's certificate, making it a juice-based drink and correctly classifiable under sub-heading No. 22029020. The respondent also pointed out that the product meets the total soluble solids requirement as per the Prevention of Food Adulteration Rules 1955.

The Tribunal examined the relevant sub-headings under Heading No. 2202 of the Central Excise Tariff and compared them with the HSN Explanatory Notes. It was noted that while the HSN Explanatory Notes had two sub-headings under Heading No. 2202, the Central Excise Tariff had specific headings for different types of drinks. The Tribunal clarified that waters, including mineral and aerated waters with added sugar or sweetening matter, are classified under sub-heading No. 2202.10, whereas drinks based on fruit juice are specifically classified under Heading No. 22029020. Since there was no dispute about the product's contents and the Revenue did not challenge the Ministry's certificate stating the product contains 23% apple juice, the Tribunal found no error in the Commissioner (Appeals) order. Consequently, the appeal by the Revenue was dismissed.

Therefore, the Tribunal upheld the classification of "Appy Fizz" as a fruit juice based drink under sub-heading No. 22029020 of the Central Excise Tariff based on the Ministry's certificate and the product's composition, rejecting the Revenue's argument for classification as aerated water.

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