Imported Pran Lassi Drink classified under CTH 04039090 not CTH 22029030, customs duty demand set aside

CESTAT Kolkata held that imported Pran Lassi Drink (Yoghurt Flavoured) should be classified under CTH 04039090 rather than CTH 22029030. The tribunal relied on international classification under H.S. Code 0403.9090 and followed Madras HC precedent in Parle Agro case, which established that flavoured milk products fall under Chapter 04, not Chapter 22. The customs duty demand, interest, and penalty were set aside as the classification under Chapter 22 was incorrect. Appeal allowed.

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Issues: Classification of imported goods under CTH 04039090 or CTH 22029030; Consideration of supplier's certificate; Applicability of Hon'ble Madras High Court judgment.

Analysis:
1. The appeal was filed against the Order-in-Appeal upholding the classification of 'Pran Lassi Drink' under CTH 22029030, contrary to the appellant's claim of CTH 04039090.
2. The appellant imported the goods, filed Bill of Entry under CTH 04039090 with 'NIL' duty rate, but later received a Show Cause Notice proposing reclassification under CTH 22029030 with CVD @12.5%.
3. The appellant argued that a certificate from the supplier supported CTH 04039090 classification, which was disregarded by the adjudicating authority.
4. The appellant cited a judgment by the Hon'ble Madras High Court in a similar case, holding that 'Flavoured Milk' falls under Chapter Heading 04, not 22.
5. The Revenue representative acknowledged the Madras High Court's decision favoring the appellant's classification under Chapter Heading 04.
6. The Tribunal considered the issue of classification under CTH 04039090 or CTH 22029030 for 'Pran Lassi Drink' imported by the appellant.
7. The Tribunal noted the supplier's certificate supporting CTH 04039090 classification and highlighted the lack of findings against this submission in the impugned order.
8. Referring to the Madras High Court judgment, the Tribunal concluded that 'Pran Lassi Drink' should be classified under Chapter Heading 04, not 22, setting aside the demand of customs duty, interest, and penalty imposed under Chapter Heading 22.
9. Consequently, the impugned order was set aside, and the appeal was allowed in favor of the appellant based on the classification under Chapter Heading 04.

This detailed analysis covers the issues of classification, consideration of evidence, and the impact of relevant judicial precedents on the final decision of the Tribunal.

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