TaxTMI 
TaxTMI 
2015 (9) TMI 1207
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....Per B Ravichandran The case involves a total of 9 appeals of which 4 are filed by the main appellant, M/s. Pepsico India Holdings Pvt. Ltd. The other 5 appeals are by individuals and their appeals are against imposition of penalties. As the issue involved is same in all these appeals, the matter is taken-up together for decision. The issue involved, in brief, is as below: 2. The main appellant is engaged in the manufacture of various namkeens and potato chips with the different flavours. In order to give various flavours to these products, the appellant procures various spices from the market and make spice mixes as per their specifications. Though in the appeals, the appellant pleaded that the process undertaken by them to produce spice ....
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....e not classifiable under Chapter 9 and will be classifiable under Heading No.2103. He also drew our attention to the supplementary notes (2) and (3) of Chapter 9 to reinforce his point. The HSN Explanatory Notes also stipulate in similar lines for classification of mixed spices with added substances of other chapters. It is mentioned that they will be classified under Chapter 9 provided the added quantity of other substances does not affect the essential character of the mixtures as a spice. Ld. Counsel further stated that the Heading No.2103 is for sauces and preparations, mixed condiments and mixed seasonings, the HSN Notes under said Heading states that, "Mixed condiments and mixed seasonings containing spices differ from the spices and ....
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....re of namkeens. There is no clear finding by the Original Authority for discounting the affidavits filed by the experts and users in the field. Instead the Original Authority examined the ingredients of one of their namkeen products viz. Kurkue Masala Munch to state that the spice developed by mixing the various ingredients is totally different and the spices mixed no longer retained their essential character. 8. On close reading of the findings of the ld. Commissioner from Para II (x) to II (xii) of the impugned order, it is clear that much emphasis has been given regarding addition of other substances along with the spices and hence, the classification of the resultant mixture was sought to be excluded from Chapter 9. However, the findin....
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....Original Authority's finding that apart from spices, certain chemical ingredients, dilutants and additives and salts are used in different proportion in the spice mix. Hence, the classification cannot be under Chapter 9. The conclusion of the Original Authority is not substantiated to the effect that how such addition of certain chemicals or additives has taken away the essential character of the spice mix. The predominant and the critical character of the mix is derived from the spices only. The addition of additives and chemicals for whatever proportion has not taken away the essential character of the spice mix in its flavour, aroma, etc. There is no concrete evidence or discussion in the finding of the Original Authority to that eff....