1991 (12) TMI 153 - AT - Central Excise

Tribunal reclassifies 'Surje' under Chapter Heading 2107.91, rejecting 0404.10 due to additives.

The Tribunal determined that 'Surje' is not classifiable under sub-heading 0404.10 due to the presence of non-permissible additives like vitamins and the ... Classification Issues Involved:1. Classification of the product 'Surje' under the Central Excise Tariff.2. Permissibility of additives like vitamins in products classified under Chapter Heading 0404.3. Application of the principle of 'Noscitur a sociis' in interpreting tariff headings.Summary:Issue 1: Classification of the Product 'Surje'The department appealed against the decision of the Collector of Central Excise (Appeals), Pune, which reclassified the product 'Surje' from Chapter Heading 2107.91 to Chapter Heading 04.04. The respondents claimed the product consisted of whey proteins and casein peptides derived from natural milk, thus fitting under Heading 04.04. The Assistant Collector initially classified it under Heading 2107.91, which was later reversed by the Collector (Appeals).Issue 2: Permissibility of AdditivesThe respondents argued that 'Surje' should be classified under Heading 04.04 as it consists of natural milk constituents with permissible additives like sugar and vitamins. However, the department countered that vitamins are not permissible additives under Note 4 of Chapter 4. The Tribunal noted that the addition of vitamins alone disqualifies the product from being classified under Chapter 4, as these are not mentioned in Note 4.Issue 3: Application of 'Noscitur a sociis'The department argued that the expression 'natural milk constituents' should be interpreted narrowly, applying the principle of 'Noscitur a sociis,' meaning the term should be understood in the context of its associated words. The Tribunal agreed, stating that whey proteins and casein peptides, being chemically derived, are not 'natural milk constituents' and thus, 'Surje' does not fit under Heading 04.04.Conclusion:The Tribunal concluded that 'Surje' is not classifiable under sub-heading 0404.10 as an edible product of animal origin due to the presence of non-permissible additives like vitamins and the fact that its constituents are not 'natural milk constituents.' The product is appropriately classified under Chapter Heading 2107.91. The appeal was allowed, restoring the classification under Heading 2107.91.