2024 (10) TMI 976 - AT - Central Excise

'Minute Maid Nimbu Fresh' Classified as Fruit Juice-Based Drink, Revenue's Appeal Dismissed, Decision Affirmed.

The Tribunal upheld the classification of 'Minute Maid Nimbu Fresh' under tariff item 22029020 as a 'fruit pulp or fruit juice-based drink,' consistent ... Classification of goods under the Central Excise Tariff - interpretation of Tariff Item 22029020 as fruit pulp or fruit juice based drink - interpretation of Tariff Item 22021020 as lemonade - application of the common parlance test and supporting legislation test - application of regulatory composition threshold for fruit-content (minimum 5%) - precedential effect of a Larger Bench decision of the TribunalClassification of goods under the Central Excise Tariff - interpretation of Tariff Item 22029020 as fruit pulp or fruit juice based drink - interpretation of Tariff Item 22021020 as lemonade - application of the common parlance test and supporting legislation test - application of regulatory composition threshold for fruit-content (minimum 5%) - precedential effect of a Larger Bench decision of the Tribunal - Minute Maid Nimbu Fresh is classifiable under Tariff Item 22029020 as a fruit pulp or fruit juice based drink and not under Tariff Item 22021020 as lemonade. - HELD THAT: - The Tribunal held that the question is concluded by the Larger Bench decision in Brindavan Beverages Pvt. Ltd. & Others which applied both the common parlance test and the supporting legislation test and determined that products meeting the regulatory composition threshold (not less than 5% fruit juice and appropriate total soluble solids) fall within Tariff Item 22029020 as fruit pulp or fruit juice based drinks. The Larger Bench rejected the contrary view in Hindustan Coca Cola (Tri.-Mumbai) and explained that where lemon/lime juice content is at least 5% the product is a fruit-juice based drink, whereas lesser fruit content would classify as lemonade. The Tribunal observed that the Department has not assailed the Larger Bench decision and that subsequent Tribunal orders have followed it; accordingly, the impugned Commissioner (Appeals) order allowing classification under 22029020 was affirmed. [Paras 5, 6, 8]Impugned order sustaining classification of MMNF under Tariff Item 22029020 is upheld; Revenue's appeal dismissed.Final Conclusion: The Tribunal dismissed the Revenue appeal and sustained the Commissioner (Appeals) order, holding that Minute Maid Nimbu Fresh is classifiable as a fruit pulp or fruit juice based drink under Tariff Item 22029020 in view of the Larger Bench decision and applicable regulatory thresholds. Issues:Classification of the product 'Minute Maid Nimbu Fresh' under tariff item 22029020 as 'Fruit pulp or fruit juice-based drink' or under tariff item 22021020 as 'Lemonade.'Analysis:The appeal was filed by the Revenue challenging the Order-in-Appeal passed by the Commissioner (Appeals) in favor of the Assessee. The Respondent, engaged in manufacturing beverages, classified the product 'Minute Maid Nimbu Fresh' under tariff item 22029020. The Department, however, argued for classification under tariff item 22021020 as 'Lemonade.'The Tribunal considered the issue and referenced the decision of the Larger Bench in the case of Brindavan Beverages Pvt. Ltd. & Others vs. CCE & ST, Hapur, where it was held that 'Minute Maid Nimbu Fresh' falls under tariff item 22029020 as a 'fruit pulp or fruit juice-based drink.' The Department did not challenge this decision, and previous orders also supported this classification.The Tribunal highlighted that the product's fruit juice content and total soluble solids meet the criteria for classification under tariff item 22029020. It was emphasized that even when lemon juice is added, if the fruit content is not less than 5%, the product is considered a fruit juice-based drink. This interpretation was consistent with regulations regarding fruit beverages.The Tribunal noted that the decision of the Larger Bench had been followed in various other cases, confirming the classification of similar products under tariff item 22029020. Consequently, the Tribunal found no fault in the Commissioner (Appeals) decision and dismissed the Revenue's appeal.In conclusion, the Tribunal upheld the classification of 'Minute Maid Nimbu Fresh' under tariff item 22029020 as a 'fruit pulp or fruit juice-based drink,' in line with the decision of the Larger Bench and previous rulings. The appeal by the Revenue was dismissed, affirming the Commissioner (Appeals) decision.