Fruit preparation classification: diluted fruit-based drink remains under Heading 20.01, not non-alcoholic beverage.

A fruit-based drink that remained a preparation of fruit, despite dilution, water, sugar and additives, was classifiable under Heading 20.01 rather than as a non-alcoholic beverage under Heading 22.02. The tariff was read to cover preparations of fruits under Heading 20.01, while Heading 22.02 excluded fruit or vegetable juices of Heading 20.01. Because the tariff contained no separate concentration-based criterion, dilution alone did not change the product's essential character or remove it from Heading 20.01. The product was therefore correctly classified as a fruit preparation.

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Issues: Whether the product marketed as a fruit drink was classifiable as a fruit preparation under Heading 20.01 of the Central Excise Tariff or as a non-alcoholic beverage under Heading 22.02.

Analysis: The product was found to be a preparation of fruit, with ingredients and analytical material showing that it remained a fruit-based preparation notwithstanding dilution, water, sugar and additives. Heading 20.01 specifically covers preparations of vegetables, fruits, nuts or other parts of plants, while Heading 22.02 covers non-alcoholic beverages but excludes fruit or vegetable juices of Heading 20.01. The Tribunal held that the tariff did not provide any separate criterion based on concentration to distinguish fruit juice from fruit juice beverages, and that diluted fruit juices do not cease to be fruit preparations. Support was drawn from earlier decisions holding that preparations of fruit juice fall within Heading 20.01 and that only beverages falling outside Heading 20.01 are excluded from Heading 22.02.

Conclusion: The product was correctly classifiable as a fruit preparation under Heading 20.01 and not under Heading 22.02, in favour of the assessee.

Ratio Decidendi: A fruit-based beverage that remains a preparation of fruit is classifiable under Heading 20.01, and dilution alone does not take it out of that heading where the tariff provides no separate concentration-based distinction.

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