Classification of fruit juice based beverages under Tariff Item 22029020 upheld; duty demands under the rival heading were set aside.

Fruit pulp or fruit juice based beverages, including Minute Made Nimbu Fresh, 7up Nimbooz Masala Soda and 7up Nimbooz, were held classifiable under Tariff Item 22029020 and not under 22021020 of the Central Excise Tariff. The tribunal relied on the larger bench classification and found the contrary view in the impugned orders unsustainable. As a result, duty demands raised on the basis of Tariff Item 22021020 were set aside. The appropriation of cenvat credit already paid in one appeal was left undisturbed.

---

---

Issues: Whether the beverages manufactured by the appellants were classifiable under Tariff Item No. 22021020 or Tariff Item No. 22029020 of the Schedule to the Central Excise Tariff Act, 1985, and whether the consequent demands were sustainable.

Analysis: The larger bench had already determined that the beverages in question, including Minute Made Nimbu Fresh, 7up Nimbooz Masala Soda and 7up Nimbooz, fall under Tariff Item No. 22029020 as fruit pulp or fruit juice based drinks. In view of that binding classification, the contrary view adopted in the impugned orders could not be sustained. The only matter left untouched was the appropriation of the cenvat credit already paid in one appeal.

Conclusion: The goods were classifiable under Tariff Item No. 22029020 and not under Tariff Item No. 22021020. The duty demands based on the latter classification were set aside, with no interference in the appropriated cenvat credit component in one appeal.

---