TaxTMI 
TaxTMI 
2017 (9) TMI 943
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....assessment for Customs duty. Based on certain information that the appellant-assessee had mis-classified these products in order to evade payment of additional duty of customs, the officers conducted certain verification and thereafter proceedings were initiated by issue of SCN dated 23.05.2007. Classification of 15 products imported by the appellant-assessee and consequent valuation was the subject matter of dispute. The case was adjudicated by the original authority who held that the classifications declared by the appellant-assessee at the time of import of these goods were not correct. He examined each one of the imported items and concluded on their classification. These imports were covered by 33 Bills of Entry. The assessment in respect of 30 Bills of Entry were provisional due to pendency of final valuation with Special Valuation Branch. Three Bills of Entry were assessed finally as same could not be linked to SVB during the material time. 3. The original authority in the impugned order examined each one of the imported items and held on their classification and also valuation to be followed. The appellant-assessee accepted the findings in respect of six items and paid t....
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....ted by the appellant-assessee during the course of hearing. There are nine products imported by the appellant-assessee, the classifications of which are now in dispute. The original authority classified these products either under Chapter 21 or under Chapter 33 depending upon the nature and usage of these products. Chapter 21 deals with miscellaneous edible preparations. Chapter 33 deals with essential oils and resinoids; perfumery, cosmetics or toilet preparations. The appellant-assessee claimed classification under Chapter 22, 29 and 30 of the tariff. These deal with beverages, spirits and vinegar (chapter 22), organic chemicals (chapter 29), pharmaceutical products (chapter 30). We considered the dispute in respect of each item for a finding. 8.1 ROOIBOS SOD Drink The original authority examined the products catalogue and recorded as below:- "As per the product literature in the products Catalogue, Rooibos SOD Drink is a unique health benefit tea from South Africa, grown only in the magnificent unpolluted area in the Cedarberg region of the Cape of Good Hope. Rooibos SOD Drink is a caffeine free drink. It has a soothing effect on the central nervous system and is well a....
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....99, 22029090 and 21069099 in the Bills of Entry (mentioned in the Annexure-I & II). CTH0902 pertains to Tea, whether or not flavored. CTH/CETH 090200 does not cover nutritional drinks made from herbal infusions or herbal teas including products which are claimed to offer relief from ailments or contribute to general health and well-being . Therefore, Rooibos SOD Drink cannot be classified as Tea under CTH/CETH090200. The other CTH/CETH preferred by the Importer is 2202, which pertains to Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter of flavored, and other non-alcoholic beverages, not including fruit or vegetable juices of heading 20.09.CTH 2202 does not cover nutritional health drinks therefore classification under CTH.CETH 2202 is not correct. The Importer had also classified Rooibos SOD Drink in CTH 3004, which pertains to medicaments (excluding goods of heading 30.02, 30.05 or30.06) consisting of mixed or unmixed product for therapeutic or prophylactic uses, put up in measured doses ( including those in the form of transdermal administration systems) or in forms of packing for retail sale. At the bottom of the above produc....
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....lements, based on extracts from plants, fruit concentrates, honey, fructose, etc. and containing added vitamins and sometimes minute quantities of iron compounds. These preparations are often put up in packagings with indications that they maintain general health or well-being. Similar preparations, however intended for the prevention or treatment of diseases or ailments are exculuded (heading 30.03 or 30.04) The heading further excludes: Preparations made from fruit, nuts or other edible parts of plants of heading 20.08, provided that the essential character of the preparations is given by such fruit, nuts or other edible parts of plants (heading 20.08). Micro-organisms of heading 21.02 put up as food supplements for human consumption (heading 21.02)." The above clarificatory notes when applied to products in dispute make is clear that these cannot be considered as pharmaceutical products under Chapter 30 as now claimed by appellants. 8.3 BAE/K-Liquid Chlorophyll: The appellant claimed the classification under Chapter 29 as organic chemicals. The Revenue classified the same under 210690/2106 9090/2108 99. We have perused the product literature as well as the samp....
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....ine under Chapter 30. No product literature was submitted. However, based on the details of ingredients as furnished by the appellant-assessee, it is apparent that it is a food supplement made from plant extracts, consumed for general health and well-being. As in the case of Rooibos it is also made from a single ingredient in the form of capsules. The said product comes with a disclaimer that this is not medicine and not intended to diagnose, treat, cure or prevent any disease. This is a plant extract consumed for general health and well-being. Clearly the said product cannot be called as a medicine meriting classification under Chapter 30. We are in agreement with the original authority for classification of this product under Chapter 21. 8.7. K- Link Puyikang/Puyikang Takara, BAE Power Oil/K-Energy Power Oil, kinotakara, and Power touch: These products were sought to be classified under Chapter 30 as medicines by the appellant-assessee. The original authority had examined the product literature, the contents and the usage of the said products and concluded that these are to be correctly classified under Chapter 33 which covers essential oils and resinoides; perfumery, cosme....