2012 (12) TMI 831

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....Consultant Respondent Rep. by: Mr. Ganesh Haavanur, A.R. Per P.G. Chacko The issue in these appeals of the assessee pertains to classification of sugarfree chewing gum which was classified by them under Sub-heading 2106 90 99 and was sought to be classified by the department as diabetic food under Subheading 2106 90 91 of the first Schedule to the Central Excise Tariff Act for the period ....

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....a penalty on the appellant. 2. Heard both sides. The learned counsel for the appellant produced samples of the product and submitted that it was not meant for diabetic patients and that the description "sugarfree" shown on the label of the product purported to indicate its low calorific value and thereby to show that it was unsuitable for consumption by children. Even though, on account of its ....

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....sugarfree chewing gums, which clearly indicated that the goods were prepared for people suffering from diabetes. Just because these goods were consumed by calorie-conscious people, the character of "diabetic preparation" would not be taken away. He also relied on the explanatory notes to HSN. 3. After giving careful consideration to the submissions, we have found substance in the submissions ma....

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....es to HSN Heading 21.06 also justify this classification. As per these notes, Heading 21.06 includes, inter alia , "Sweets, gums and the like (for diabetics in particular) containing synthetic sweetening agents (Eg: Sorbitol) instead of sugar". Admittedly, the subject products are gums containing synthetic sweetening agents instead of sugar. Therefore they have been rightly classified under Headin....