Classification of spice powders under sub-heading 0903.00 led to quashing of the notice for covered goods

Turmeric powder, chilli powder, coriander powder, masala powder and allied preparations were discussed in the context of classification under sub-heading 0903.00 as spices, rather than as edible preparations under 2108.90. A departmental circular distinguishing spice mixtures from instant edible preparations was relied on, and the Department substantially accepted that the goods, except specified items, fell within the spice entry. In that setting, a further show cause process and recourse to alternate statutory remedy were treated as unnecessary. The notice was quashed to the extent it covered goods falling under 0903.00, while the Department remained free to proceed against any other item.

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Issues: Whether the writ petition challenging the show cause notice was liable to be entertained and whether the notice could be quashed insofar as the goods were covered by sub-heading 0903.00.

Analysis: The petitioner disputed the proposed classification of turmeric powder, chilli powder, coriander powder, masala powder and allied preparations, contending that they were classifiable as spices under sub-heading 0903.00 and not as edible preparations. The Department, in its counter affidavit, relied on the administrative instructions in Circular No. 205/39/96-CX dated 30-4-1996, which distinguished between spice mixtures classifiable under 0903.00 and instant edible preparations falling under 2108.90. In the counter affidavit, the Department substantially accepted that the petitioner's goods, except certain specified items, were classifiable as spices. In those circumstances, insisting on a further show cause and relegating the petitioner to the alternate statutory remedy would have served no useful purpose.

Conclusion: The show cause notice was quashed to the extent it related to articles falling under sub-heading 0903.00. The Department was left free to proceed in accordance with law in respect of any other item not covered by that entry.

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