2000 (2) TMI 133 - AT - Central Excise

Appellate Tribunal: Fruit Powder in Unit Containers Classified Under Tariff Heading

The Appellate Tribunal CEGAT, Mumbai, held that goods supplied by the appellant, including powder of various fruits, were classified as sold in unit ... Food Issues: Classification of goods under tariff headings based on unit containers.In this judgment by the Appellate Tribunal CEGAT, Mumbai, the issue at hand was the classification of goods supplied by the appellant, which were powder of various fruits like mango, banana, and tomato, to its customers. The main question was whether these products were supplied in unit containers or not, as it would determine the applicable tariff heading. The Collector (Appeals) had held that the goods were supplied in unit containers, leading to a demand for duty from the appellant.The Tribunal analyzed Heading 2001.10 of the tariff, which covers preparations of vegetables, foods, etc., put up in unit containers and intended for sale. The term 'unit container' was defined as a container designed to hold a pre-determined quantity or number. The appellant argued that the quantity determination should be made by the seller, and since different quantities were sold to different customers, the goods were not sold in unit containers. However, the Tribunal rejected this argument, stating that every sale involves a pre-determined quantity determined by the seller before the sale.The Tribunal referred to previous decisions to support its analysis. In one case, it was held that goods sold in containers designed for a specific quantity but containing less than that quantity were not put up in unit containers. Another decision stated that clearance of goods in barrels or drums did not amount to goods put up in a unit container. The Tribunal emphasized that the container's design to hold a pre-determined quantity makes it a unit container, even if different quantities are sold.The appellant provided details of the containers used to sell the goods, ranging from 10 kg to 50 kg, with gate passes confirming that each container held the specified quantity. The Tribunal found no reason to interfere with the finding that the goods were indeed sold in unit containers, leading to the dismissal of the appeal.