Excise classification finality blocks a fresh challenge to consequential demand; partially skimmed milk powder classified separately.

A consequential excise demand cannot be challenged independently where the underlying classification decision in favour of the assessee has not been shown to be challenged and has attained finality, so the Revenue cannot reopen the settled classification through the quantum order alone. On classification, partially skimmed milk powder was treated as a distinct marketable commodity from skimmed milk powder, and the tariff description, ISI specification, Prevention of Food Adulteration Rules, and international standard supported classification under Heading 0401.19 rather than 0401.13. The Revenue's appeals failed and the assessee's classification was left undisturbed.

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Issues: (i) whether the Revenue could challenge only the consequential quantum order when the earlier classification decision in favour of the assessee had not been shown to be challenged and had attained finality; and (ii) whether partially skimmed milk powder was classifiable under Heading 0401.19 and not under Heading 0401.13.

Issue (i): whether the Revenue could challenge only the consequential quantum order when the earlier classification decision in favour of the assessee had not been shown to be challenged and had attained finality.

Analysis: The appeal concerning the consequential order could not survive independently when the underlying classification decision in the assessee's favour had not been shown to be challenged by the Department. In that situation, the question of correctness of the classification was treated as no longer open, and the consequential demand could not be assailed on its own.

Conclusion: The issue was decided against the Revenue and in favour of the assessee.

Issue (ii): whether partially skimmed milk powder was classifiable under Heading 0401.19 and not under Heading 0401.13.

Analysis: The material placed before the Court supported the view that partially skimmed milk powder is a distinct marketable commodity from skimmed milk powder. The tariff description, the ISI specification, the Prevention of Food Adulteration Rules, and the international standard all supported separate treatment of partially skimmed and skimmed milk products. No material was shown to justify a contrary view.

Conclusion: The issue was decided against the Revenue and in favour of the assessee.

Final Conclusion: The Revenue's appeals failed, and the classification adopted in favour of the assessee was left undisturbed.

Ratio Decidendi: A consequential excise demand cannot be challenged independently where the foundational classification decision has attained finality, and tariff entries must be applied according to the distinct commercial identity of the goods.

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