2018 (1) TMI 261

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....case are that the respondents are engaged in the manufacture of preparations for lemonades or other beverages intend for use in the manufacture of aerated water. To prepare these preparations, the respondent receives the soft drink concentrate from the Coca-Cola entity. This soft drink concentrate is diluted and sugar syrup is added to it and this compound preparation is bottled and sold. Prior to introduction of the new 8 digit Central Excise Tariff w.e.f. 28.02.2005, the respondent classified these goods under chapter sub-heading 2108.10 of the Central Excise Tariff Act, 1985 and paid Basic Excise Duty @ 16% ad valorem under the first schedule to the Central Excise Tariff Act, 1985 and Special Excise Duty (SED) @ 8% ad valorem under the s....

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....reparation intended for use in the automatic vending machine. We find that the lower Authorities have not discussed the classification of the impugned product in terms of the various Chapter Notes, as mentioned above. The classification of BIB and heading 2106 90 50 in the 1st Schedule is not disputed. This heading is not figuring in the 2nd Schedule for the purpose of levy of SED. The Boards clarification dated 17/8/2006 relied upon by the lower authority states that preparations for lemonades and other beverages intended for use in the manufacture of aerated water are classifiable the Tariff Item 2106 90 50 in the 1st Schedule and under Tariff item 2106 90 19 in the 2nd Schedule to the Central Excise Tariff Act 1985 w.e.f. 28/2/2005. We f....