1986 (8) TMI 239 - AT - Central Excise

Tribunal classifies bubble gum separately from chewing gum, granting relief to appellants

The tribunal ruled in favor of the appellants, holding that bubble gum should be classified under Item No. 68 CET and not under Item No. 1A(1) as chewing ... CLASSIFICATION Issues: Classification of bubble gum under Central Excises and Salt Act, 1944.Analysis:1. The judgment pertains to an appeal against the order-in-appeal passed by the Collector of Central Excise confirming the classification of bubble gum as chewing gum under Item No. 1A(1) of the Central Excises and Salt Act, 1944. The Assistant Collector had upheld this classification, leading to a dispute regarding the correct classification of bubble gum.2. The main issue raised by the appellants was whether bubble gum should be classified under Item No. 68 CET as claimed by them or under Item No. 1A(1) as chewing gum, as determined by the lower authorities. The judgment focuses solely on resolving this classification dispute.3. During the hearing, both parties confirmed that there was no previous decision on this specific issue by any competent authority. The lower authorities based their decision on the similarity of ingredients in both chewing gum and bubble gum, as well as the fact that both are meant for chewing. However, the appellants argued that the Indian Standard Specification No. 6747-1981 highlighted differences in ingredient proportions required for chewing gum and bubble gum.4. The judgment highlights the essential difference between chewing gum and bubble gum, emphasizing that bubble gum can produce bubbles after chewing, unlike chewing gum. The court also refutes the argument that the Indian Standard Specification and the Prevention of Food Adulteration Act categorize chewing gum and bubble gum together, stating that the terms are not synonymous. The plural usage in Item No. 1A(1) covering 'Chewing gums' does not automatically include bubble gum.5. Ultimately, the tribunal rules in favor of the appellants, holding that bubble gum should be classified under Item No. 68 CET and not under Item No. 1A(1) as chewing gum. The Assistant Collector is directed to provide the necessary relief to the appellants within three months from the date of the order.This detailed analysis of the judgment provides a comprehensive understanding of the classification dispute regarding bubble gum under the Central Excises and Salt Act, 1944, and the reasoning behind the tribunal's decision to classify it under a specific item.