Fruit juice dilution and flavouring place ready-to-serve drinks under the non-alcoholic beverage classification

A ready-to-serve drink made by diluting fruit juice with water and adding sweetening, flavouring and citric acid was held classifiable as a non-alcoholic beverage under sub-heading 2202.90, not as a preparation of fruit juices under sub-heading 2001.20. The product was described by the assessee itself as a ready-to-serve beverage and was not shown to remain a normal fruit juice. The circular relied on, which concerned fruit-pulp based drinks, was found inapplicable because the product and manufacturing process were materially different. The classification adopted by the lower authorities was therefore upheld and the appeal failed.

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Issues: Whether the ready to serve beverages manufactured by adding water, sweetening/flavouring agents and citric acid to fruit juices were classifiable under sub-heading 2001.20 as preparations of fruit juices or under sub-heading 2202.90 as non-alcoholic beverages.

Analysis: The product was described by the assessee itself as ready to serve beverages and was not shown to be a normal fruit juice. The manufacturing process showed that the fruit juice was diluted with water and then sweetened or flavoured with essences and citric acid. The assessee had also accepted the classification proposed in the show cause notice. The circular relied upon by the assessee dealt with fruit pulp based drinks and was held not applicable because the present product was not based on fruit pulp and its manufacture was materially different.

Conclusion: The product was correctly classifiable under sub-heading 2202.90 and not under sub-heading 2001.20.

Final Conclusion: The classification adopted by the lower authorities was upheld and the appeal failed.

Ratio Decidendi: A drink made by diluting fruit juice with water and adding sweetening or flavouring ingredients is classifiable as a non-alcoholic beverage under the residuary beverage heading, unless it is shown to remain a fruit juice preparation covered by the specific heading.

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