Tariff classification of white chocolate turned on HSN notes and proof of cocoa butter, securing exemption eligibility.

For tariff classification, white chocolate must conform to the HSN Explanatory Notes, including proof of cocoa butter content. The Tribunal found that the Department failed to establish by test report or other indisputable evidence that the goods contained cocoa butter, so they could not be treated as white chocolate. On that basis, the products were eligible for exemption under Notification No. 12/2012-CE, and the appeals were allowed.

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Issues: Whether Nestle Milkybar Eclairs is classifiable as white chocolate and, if not, whether it is entitled to exemption under Notification No. 12/2012-CE dated 17/03/2012.

Analysis: The Tribunal followed its earlier decision in the appellant's own case and noted that white chocolate, for tariff purposes, must answer the description in the HSN Explanatory Notes. It found that the Department did not conclusively establish the presence of cocoa butter in the impugned goods by any test report or other indisputable evidence. In the absence of such proof, the products could not be excluded from the exemption merely on the basis of wrappers relating to an earlier period.

Conclusion: Nestle Milkybar Eclairs was held not to be white chocolate for the relevant period and was held eligible for the exemption under Notification No. 12/2012-CE, with the appeals allowed.

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