2013 (8) TMI 773

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....se products under sub-heading 1704.90 of Central Excise Tariff and claiming concessional rate of duty of 8% vide Sl. No. 247 of Notification No. 6/2002-CE dated 1.3.2002. However, after some investigation, Revenue was of the view that for manufacturing these products gaur gum was used and for that reason the product would be classifiable under sub-heading 1704.10 in which case they were to pay duty at the rate of 16% instead of 8% as paid by them. Based on such reasoning, a show-cause notice dated 13-02-2008 for demanding duty short-paid for the period March 2003 to February 2005 was issued and adjudicated. After adjudication and first appeal, an amount of Rs.5,47,94,432/- is confirmed against the appellant along with interest and imposed e....

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....at in their case the percentage of gum Arabic is only 1%.) The gum base in bubble gums cannot be swallowed and digested. After chewing, the gum portion of such items has to be thrown out whereas in the case of sugar confectionary manufactured using gaur gum there is no gum left in mouth after it is slowly dissolved in saliva. The full quantity is dissolved in mouth and enters the digestive system. They rely on the decision of the Tribunal in the case of Hari Chand Shri Gopal Vs. CCE, Meerut - 1996 (83) ELT 281 and emphasize that the expression and the like used in sub-heading 1704.10 restrict the coverage of the entry and the products which cannot be chewed resulting in residue of gum, will not be classifiable under 1704.10. They submit tha....

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....r. J. Sankaran, Quality Manager and by Shri.K. Subramanian Manager Factory Accounts. He argues that sub-heading 1704.01 does not specify the percentage of gum that should be present in the product to merit classification in the heading. The description of the goods covered by this heading is amplified by the expression including chewing gum, bubble gum and the like. This cannot mean that the heading is restricted to goods like chewing gum and bubble gum only. He argues that the heading will cover all sugar confectionary containing gum like the impugned goods. 6. Further the learned AR points out that the products in question were marketed describing the products as Chewee Sweets, Cheweee Dragee etc. whereas applicant's other products not....