TaxTMI 
TaxTMI 
TaxTMI 
2018 (1) TMI 204
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....od preparations, namely, wheat flour, rice flour, corn crunch, rice crunch, etc. which were supplied by them to M/s. Nestle India Ltd. and Wockhardt Life Sciences Ltd. by classifying them under Chapter Heading 1901.11. The appellant was filing their declaration prior to 2001 and declaring the said goods for use of infant in unit container of 30 kgs/10 kgs. A show cause notice was issued to the appellant on 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 penal....
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.... He further submits that the appellant were regularly filing ER-3 returns which are in the knowledge of the Revenue, therefore, the extended period of limitation is not invokable in view of the decision of this Tribunal in the case of Accurate Chemicals Industries Vs. CCE-2014 (300) ELT 451 (T) which has been affirmed by the Hon'ble Allahabad High Court reported in 2014 (310) ELT 411 (All). 4. On the other hand, learned AR supported the impugned order and submitted that it is fact on record the appellant is supplying the goods to industrial consumers who used these goods and manufactured goods for use of infants. Admittedly, these goods have not been used directly by the infant. Therefore, these are not classifiable under chapter 1901.11 T....
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....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 by other industrial unit for further manufacture of the said goods for use of infant. The entry is....
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....Extruded Rice Moong Blend are only to one industrial buyer M/s.Wockhardt Life Sciences Ltd., Village Sarsini, District Patiala who are using these items as input for preparation of their products which are only for infant use. There is no bar to sell an item for infant use to industrial customers who in turn are using the same as inputs for preparation of other products for infant use. The requirement of the law is that the item should be for infant use and this requirement is being observed in our case. A photocopy of one of the supply orders, received from M/s. Wockhardt Life Sciences Limited are enclosed. One sample of empty bag of 30 kg is also sent herewith as desired. A sample of each items empty bag in which we are clearing the foo....
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.... Member (Judicial) on the issue of limitation and allowing the appeal on limitation as entire period is beyond normal period of limitation, on the issue of classification, on merits, I hold in favour of the Revenue on the following basis:- 12. I find that that the impugned goods are under tariff heading 1901 which consists of preparation of food which are put into unit container but the tariff heading has two sub categories namely, one for infant use and other which implies not for infant use. So essentially the question is whether the impugned products made by the appellant are capable of use for infants. Admittedly, the products made by the appellant is an intermediate products which are not capable of being used by the infants as such n....
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....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 i....