2007 (4) TMI 7

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....roduct is packed in unit containers and supplied to Integrated Child Development Scheme (for short 'ICDS') in Haryana. 3. On 21-3-1997 a show cause notice was issued by the Department raising a demand on the assessee for mis-declaration of the said products as 'chabena/prasad'. In the said show cause notice it was further alleged that the products were sold under the brand name 'bonton'. Under the said show cause notice it was also alleged that the said 'puffs' were sold in the market as breakfast cereals, high in protein and low in cholesterol. It was further alleged that the said products were sold to five star hospitals and public schools. In the circumstances the assessee was called upon to pay to the Department Rs.2.31 crores as dut....

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....nbsp;   1904.10 Put up in unit containers and ordinarily intended for sale 10%   1904.90 Other Nil   6. For the same period we quote hereinbelow Chapter Heading 21.07: "CHAPTER 21 MISCELLANEOUS EDIBLE PREPARATIONS Notes: 1 to 4.                                           xxx                                   xxx &nbsp....

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....) (4) 21.07   Edible preparations, not elsewhere specified or included     2107.10 Prasad or prasadam Nil   2107.20 Sterilised or pasteurized miltone Nil         Other:     2107.91 Put up in unit containers and ordinarily intended for sale 50%     Sale     2107.99 Other 50%     7. At this stage it may be noted that Chapter sub-heading 2107.91 during the relevant period attracted 50% duty. However, the effective was nil in view of General Exemption No. 83 (Item No. 25) of the No. 2/1994 dated 1-3-1994. We quote hereinbelow Item No. 25 of General Exemption No.....

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....ion claimed by the assessee, than the classification. We may make it clear that the 'puffs' prepared from cereals cannot fall within the item Prasad/prasadam'. To that extent we are in agreement with the impugned order adjudication. 10. The main question which was required to be decided was whether 'puffs' made from cereals would at all fall under Chapter Heading 19.04 or whether they would fall under Chapter Heading 21.07 (remoulded as Chapter heading 21.08 during the Assessment Year 1996-97). 11. For the sake of clarity we also quote hereinbelow the remoulded Chapter Heading 21.08. "CHAPTER 21 MISCELLANEOUS EDIBLE PREPARATIONS Notes: 1 to 8.              &n....

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....ages, consisting, for example, of flavoured or coloured syrups, syrup flavoured with an added concentrated extract, syrup flavoured with fruit juices and concentrated fruit juice with added ingredients. Heading No. Sub- heading No. Description of goods Rate of duty (1) (2) (3) (4) 21.08   Edible preparations, not elsewhere specified or included     2108.10 Preparations for lemonades or other Beverages intended for use in the manufacture of Aerated Water 40%   2108.20 Sharbat 20%   2108.30 Prasad or Prasadarn Nil   2108.40 Sterilised or pasteurized miltone Nil     Other:     2108.91 ....