AI Drafter 
TaxTMI 
TaxTMI 
2018 (1) TMI 204
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....n 9.3.2007 by invoking the extended period of limitation but classified the said product under chapter heading 1901.19 of the Tariff which attracts 16% rate of duty. Therefore, the matter was adjudicated, which converted into demand of duty by classifying the said product under Chapter Heading 1901.19 alongwith interest and equivalent penalty was also imposed on them. Aggrieved with said order, the appellant is before us. 3. Shri B.L.Narasimhan, Advocate, learned Counsel for the appellant appearing before us and submits that the appellant is contesting the matter on merits and well as on limitation. On merits, he submits that as per Central Excise Tariff, classification of their product is appropriately classifiable under chapter heading 1901.11 as food preparations put into unit container for use of infant. It is his contention that the appellant is manufacturing cereal products and are supplying the same to industrial consumers which are ultimately have been used by the infant. Therefore, whether the goods manufactured by them were supplied to further manufacture or to industrial consumers have no impact because as per the tariff entry these are to be used by the infant and ad....
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....40% by weight of cocoa calculated on a totally defatted basis; not elsewhere specified or included; food preparations of goods of heading Nos.04.01 to 04.04, not containing cocoa or containing less than 5% by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included Put up in unit containers: 1901.11 For infant use 1901.19 Other 8. As per the above entries, they should be food preparations which are put up in unit containers. For infant use is classifiable under chapter heading 1901.11. The case of the Revenue is that the said goods are not readily available for infant in unit containers as the appellant have cleared these goods to industrial consumer, therefore the goods cannot be classified under chapter heading 1901.11. After going through the entries, we find that these goods are for infant use and it has not been disputed by the learned adjudicating authority that these goods were ultimately used by infant, therefore, the goods qualify for classification under chapter heading 1901.11. The intent of the legislature is not that the said goods were strictly used by the infant from the manufacturer or cannot be used b....
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.... the food preparation claimed to be covered under sub- heading 1904.90 attracating NIL rate of duty is also sent herewith as desired. However we are not manufacturing the product falling under sub-heading 1901.99 though declared in our declaration under Rule 173-B. Please find enclosed herewith a photocopy of one of our invoices issued in favour of M/s.Wockhardt Life Sciences Ltd. is also enclosed as a sample for verification at your end. However the copies of the sale invoiced along with the relevant purchase orders relating to the period 4/2000 to 10/2000 will be produced later on, if needed & if desired. Thereafter the classification was approved, as the fact of declaration made by the appellant was in the knowledge of the Revenue in support of this evidence produced by the appellant which shows name of the buyer is an industrial consumer. In that circumstance, the extended period of limitation is not invokable as all the facts were in the knowledge of the department that the classification/declaration filed by the appellant is in respect of the goods under chapter heading 1901.11. Therefore, we hold that the extended period of limitation is not invokable in....
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....ld by the party were not consumable for the infants. Their contention that it is not necessary that goods are sold directly to the ultimate consumers to avail the benefit of exemption, has, therefore, no substance. The goods were manufactured and supplied in this case against specific orders for the use of the industrial consumers. In fact, they constituted one of the inputs for the industrial consumers for the preparation of their own food products. Corn crunch and rice crunch and rice crunch supplied to M/s Nestle India Ltd were used further in the production of cereal food meant for infants and no such food like Corn crunch or rice crunch is sold in the market as infants food . The use by industrial consumers certainly does not fall within the ambit of term infants use. As mentioned above, the party s entire sale is to the industrial consumers and that too, against specific orders and there is no direct sale of such goods in the market. Obviously, the goods were manufactured by the party for the sole purpose of being consumed by other manufacturers and they were not consumable by the infants. In fact, they were not meant for the consumption of the infants and no sale was intende....