Tariff classification of confectionery containing cocoa: chocolate-based toffee falls under food preparations, not sugar confectionery.

Choco cream toffee was classifiable as food preparation containing cocoa rather than sugar confectionery not containing cocoa, because Chapter 17 excludes confectionery containing cocoa and Chapter 18 covers products with cocoa. The product used chocolate as an essential ingredient, the record showed positive test reports for cocoa, and chocolate was treated as a cocoa-derived product satisfying the tariff phrase "containing cocoa" by actual presence in the final product. It was therefore correctly classified under sub-heading 1804.00 and not under sub-heading 1704.90.

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Issues: Whether choco cream toffee (double trouble) was classifiable under sub-heading 1704.90 as sugar confectionery not containing cocoa, or under sub-heading 1804.00 as other food preparations containing cocoa.

Analysis: Chapter 17 covered sugar confectionery only when it did not contain cocoa, while Chapter 18 covered food preparations containing cocoa. The product admittedly used chocolate as an essential ingredient, and the record showed positive test reports for the presence of cocoa. Chocolate being derived from cocoa beans and constituting a cocoa product, the presence of cocoa through chocolate still satisfied the tariff expression "containing cocoa". The expression was held to refer to actual presence in the final product, whether direct or indirect. The HSN notes and the tariff scheme also supported exclusion of sugar confectionery containing cocoa from Chapter 17.

Conclusion: The product was correctly classifiable under sub-heading 1804.00 of the Central Excise Tariff Act, 1985 and not under sub-heading 1704.90.

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