2007 (4) TMI 7

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.... 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 duty for the aforesaid period. This dema....

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....0%   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                     &nb....

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....lised 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. 84 vide Notification No. 2/1994. "GENERAL EXEMPTION NO.83 Effective rate of duty for certain specified goods of Chapters 4 to 22. - In exercise of the powers conferred by sub-section (1) of section 5A of the Cent....

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....s 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.                                         xxx                   &nbs....

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....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 Not bearing a brand name Nil   2108.99 Other 20%"               12. In the entire discussion in the impugned judgment there is no finding given by the Tribunal as to whether 'puffs' prepared from cereals would fall under the Chapter Heading 19.04. As far as 'puffs' prepared from soya nuts are concerned there is no f....