Tariff classification of cocoa-containing toffees turns on chapter notes, placing them in Heading 18.04 under the new tariff.

Chocolate toffees containing cocoa were classifiable under the new tariff by reference to the heading descriptions and chapter notes, not by reliance on an order under the old tariff. Chapter Note 2 of Chapter 18 treated sugar confectionery containing cocoa and other cocoa preparations as falling in Heading 18.04, while Chapter Note 1 of Chapter 17 excluded cocoa-containing sugar confectionery from Chapter 17. The goods were therefore correctly classified under Heading 18.04 and not Heading 18.03.

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Issues: (i) Whether chocolate toffees containing cocoa were classifiable under Heading 18.03 or Heading 18.04 of the Central Excise Tariff Act, 1985.

Analysis: The classification had to be determined under the new tariff on the basis of the relevant heading description and the chapter notes. Chapter Note 2 of Chapter 18 includes sugar confectionery containing cocoa and other food preparations containing cocoa in Heading 18.04, while Chapter Note 1 of Chapter 17 excludes sugar confectionery containing cocoa from Chapter 17. Reliance on an order under the old tariff was therefore misplaced for deciding classification under the new tariff.

Conclusion: The goods were correctly classifiable under Heading 18.04 and not under Heading 18.03, in favour of the Revenue.

Ratio Decidendi: For tariff classification, the specific chapter notes governing the new tariff control the result, and cocoa-containing confectionery falls outside Heading 18.03 and within Heading 18.04.

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