Unit container classification and suppression of facts determine tariff treatment and limitation for tomato puree in large jerry cans.

Tomato puree cleared in 35-litre jerry cans was treated as not packed in unit containers, so it fell under sub-heading 2001.90 rather than 2001.10. The extended limitation period was also unavailable because the assessee had disclosed the product and packing details during declaration and departmental enquiry, and suppression with intent to evade duty was not proved. On that reasoning, the departmental classification, demand and penalty could not be sustained.

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Issues: (i) Whether tomato puree cleared in 35-litre jerry cans was classifiable under sub-heading 2001.10 or under sub-heading 2001.90; (ii) Whether the demand was sustainable by invoking the extended period on the ground of suppression of facts.

Issue (i): Whether tomato puree cleared in 35-litre jerry cans was classifiable under sub-heading 2001.10 or under sub-heading 2001.90.

Analysis: The Tribunal applied the earlier view that fruit juice concentrate, pulp and tomato paste cleared in barrels or drums are not treated as goods put up in unit containers. Since the product was cleared in jerry cans of 35 litres capacity, it could not be regarded as packed in unit containers for the relevant tariff entry.

Conclusion: Tomato puree was correctly classifiable under sub-heading 2001.90, not under sub-heading 2001.10, and this issue was decided in favour of the assessee.

Issue (ii): Whether the demand was sustainable by invoking the extended period on the ground of suppression of facts.

Analysis: The assessee had filed a declaration describing the product and had also furnished details of the nature of the product and its packing during the departmental investigation. In these circumstances, the charge of suppression with intent to evade duty was not established. The extended period was therefore not available.

Conclusion: The demand was time-barred and the invocation of the extended period was unsustainable, in favour of the assessee.

Final Conclusion: The classification adopted by the department and the consequent demand and penalty could not be sustained, and the appeal succeeded.

Ratio Decidendi: Goods cleared in large jerry cans or drums are not treated as put up in unit containers for tariff classification where the statutory entry is confined to unit containers, and the extended limitation period cannot be invoked absent proved suppression of facts with intent to evade duty.

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