Beverage classification turns on intended use: a diluted table drink stayed under Heading 2202.90, not edible preparation.

A drink intended for consumption as a table beverage remains classifiable under Heading 2202.90 as a non-alcoholic beverage, even if it requires dilution with water before use. The presence of fruit or vegetable juice does not by itself remove it from Heading 22.02, and the exclusion for fruit or vegetable juices applies only where the product falls within Heading 20.01. Note 5 to Chapter 21 was read as covering industrial concentrates for mass-produced beverages, not ordinary domestic preparations of this kind. The product was therefore not classifiable as an edible preparation under Heading 21.07, and the excise classification adopted by the authorities could not stand.

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Issues: Whether the product known as Sharbat Rooh Afza was classifiable under Heading 2202.90 as a non-alcoholic beverage, or under Heading 21.07 as an edible preparation not elsewhere specified or included.

Analysis: Heading 22.02 covers non-alcoholic beverages, and the exclusion relating to fruit or vegetable juices applies only where the beverage falls under Heading 20.01. The presence of fruit or vegetable juice in a drink does not by itself take it out of Heading 22.02. The product was intended for use as a table drink on dilution with water and remained a beverage despite needing dilution. Note 5 of Chapter 21, which includes preparations for lemonades or other beverages, was understood as referring to industrial concentrates for mass-produced drinks and not domestic preparations of this kind. The product was not shown to be one that fell outside Heading 22.02 as something not elsewhere specified or included.

Conclusion: The product was classifiable under Heading 2202.90 and not under Heading 21.07, and the classification adopted by the excise authorities could not stand.

Ratio Decidendi: A diluted drink intended for consumption as a table beverage remains classifiable as a beverage under Heading 22.02 unless it is specifically excluded, and Note 5 to Chapter 21 does not extend to ordinary domestic beverage preparations merely because they require dilution before use.

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