Common-parlance classification of cheeslings as namkeen supports exemption for ready-to-consumption edible preparations under excise law.

Cheeslings were treated in common parlance as namkeen and, on that basis, were held to fall within the exemption for namkeens and similar edible preparations in ready-to-consumption form under Notification No. 3/2006-C.E. The exemption entry was read broadly, not as confined to namkeens alone, so a narrow classification approach could not justify denial of relief. On that reasoning, the demand for central excise duty, interest and penalty was not sustainable, and the prior view in the assessee's own case supported exemption for the product.

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Issues: Whether Cheeslings were covered by Notification No. 3/2006-C.E. dated 01.03.2006 as namkeens or similar edible preparations in ready for consumption form, and whether the consequent demand of central excise duty, interest and penalty could survive.

Analysis: The goods were found to be sold in common parlance as namkeen. The entry under Sl. No. 29 of Notification No. 3/2006-C.E. did not confine its scope only to namkeens, but also extended to similar edible preparations in ready for consumption form. The earlier decision in the appellant's own case had already held that Cheeslings fell within this exemption entry. In that view, the classification dispute and the denial of exemption under the later notification did not justify confirmation of duty, interest or penalty.

Conclusion: The exemption was available to the appellant, and the demand confirmed in the impugned order could not be sustained.

Final Conclusion: The appeal succeeded and the adjudication order was set aside.

Ratio Decidendi: Where a product is sold as namkeen in common parlance and falls within an exemption entry covering namkeens and similar edible preparations in ready for consumption form, exemption cannot be denied on a narrow classification approach.

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