2008 (8) TMI 625

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....e Appellant. Shri V.V. Hariharan, JCDR, for the Respondent. [Order per : P.G. Chacko, Member (J)]. - After examining the records and hearing both sides, we note that the adjudicating authority has demanded duty of over Rs. 83 lakhs from M/s. Nazareth Foods (P) Ltd. and has imposed on them equal amount of penalty. A sum of Rs. 5 lakhs paid by the party stands appropriated towards the above....

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....sewhere specified'. The learned counsel for the appellants has relied on HSN Notes under Chapters 9 and 21 in his endeavour to show that it is the essential character of spice which requires to be determined for the purpose of classifying the products. It is submitted that, under Chapter 9, it is permissible to mix a spice or a mixture of spices with non-spice ingredients like rice flour, vegetabl....

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....arified that classification under Chapter 21 was ruled out as 'mixed condiments and mixed seasonings' would mean condiments and seasonings mixed with other condiments and other seasonings. Learned counsel has also relied on the Board's Circular dated 30-4-1996, wherein it was opined that essential character of spice was in their function of adding flavour, aroma and pungency to various food prepar....

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....and the third one contained 86% of such ingredients. Nevertheless, the question whether these preparations retained the essential character of spices went unanswered. The test report returned by the laboratory did not throw any light on this question. No other competent agency was called upon to test the sample for essential character of spices. The HSN Explanatory Notes under Chapters 9 and 21 se....