Flavoured pan masala classification under tariff law favoured the assessee, with goods placed in sub-heading 2106.90.

Flavoured pan masala was treated as classifiable under sub-heading 2106.90 of the Central Excise Tariff Act, 1985 rather than 2107.91. The Tribunal followed its earlier majority ruling on the same product classification, which had been upheld by the Supreme Court, and found no positive evidence from the Department to displace the assessee's case. Purchase bills for betelnuts and the Chemical Examiner's report indicating vegetable matter supported the conclusion that the goods contained betelnuts or supari, bringing them within the claimed tariff entry.

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Issues: Whether flavoured pan masala was classifiable under sub-heading 2107.91 as claimed by the Department or under sub-heading 2106.90 as claimed by the assessee.

Analysis: The Tribunal followed its earlier majority decision on the same product classification, which had been upheld by the Supreme Court. The record showed no positive evidence from the Department to dislodge the assessee's case, while the purchase bills for betelnuts and the Chemical Examiner's report indicating presence of vegetable matter supported the conclusion that the goods contained betelnuts or supari. On that basis, the product was treated as falling under the claimed tariff entry.

Conclusion: The goods were classifiable under sub-heading 2106.90 of the Central Excise Tariff Act, 1985 and not under sub-heading 2107.91.

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