2019 (1) TMI 248

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....n used in their finished goods. All the ingredients were cleaned, grinded, blended and then packed and no other process is being adopted. The department termed their product as 'Churan for Pan' classifiable under Tariff Heading 2106 9070 attracting excise duty @ 16% as it was a preparation of fruits and vegetables used as refreshing pan flavouring material as mentioned on the packing materials and therefore, should be assessed as per Section 4A of the Central Excise Act, 1944 under serial No. 24 of Notification No. 02/2006-CE (NT) dated 01.03.2006 with abatement at the rate of 40%. The department issued three SCNs dated 13.05.2007 covering period of September 2006 to February 2007, SCN dated 10.12.2007 covering period of March 2007 to October 2007 and SCN dated 11.09.2008 covering period of November 2007 to March 2008 to the appellant proposing to classify their product under 21069070 proposing to assess their product as per the provisions of Section 4A of the Central Excise Act, 1944 and proposing the recovery of Rs. 70,248/-, Rs. 41,369/- and Rs. 10963/- respectively short paid during the said period under section 11A along with interest under Section 11AB and penalty und....

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....cture, intimation with classification intimated to the department under letter dated 08.09.2006, therefore, there is no suppression of fact or mis-declaration on the part of the appellant. Therefore, penalty under Section 11AC should also not have been imposed. 3. Sh. S.N. Gohil, Ld. Superintendent (AR) appearing on behalf of the Revenue reiterates the findings of the impugned order. 4. We have carefully considered the submissions made by both the sides and perused the records, we find that the issue to be decided in the present case is classification of the product namely, „Bilas‟ Pan Sughandh. The department has termed the product as Churan for Pan classifiable under tariff heading 2106 9070, whereas the appellant claimed under 2008 9999. Both the tariff entries are reproduced below: Chapter 21: Miscellaneous Edible Preparations Tariff Item Description of goods Unit Rate of Duty 2106 FOOD PREPARATIONS NOT ELSEWHERE SPECIFIED OR INCLUDED     2106 10 00 -Protein concentrates and textured protein substances kg. 16% 2106 90 -Other:       -Soft drink concentrates: &nbsp....

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.... 2008 97 00 -Mixtures Kg. 16% 2008 99 -Other:       -Squash :     2008 99 11 -Mango kg. 16% 2008 99 12 -Lemon kg. 16% 2008 99 13 -Orange kg. 16% 2008 99 14 -Pineapple kg. 16% 2008 99 19 -Other kg. 6%   -Other :     2008 99 91 -Fruit cocktail kg. 16% 2008 99 92 -Grapes kg. 16% 2008 99 93 -Apples kg. 16% 2008 99 94 -Guava kg. 16% 2008 99 99 -Other kg. 16% 5. From the above tariff entries, it is observed that the product namely, Churan pan is specifically provided under tariff item 2106 9070. The product is manufactured with ingredients listed below: • Semar Musra • Amla • Bel Pulp • Mulethi • Mixed Spices • Natural & artificial flavour & flavouring substances • Saccharin Sodium • Sugar & Menthol The above ingredients are cleaned, grinding and blended and then packed and no other process is adopted. This product is used to give flavour and taste to the pan.....

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....सी. शु. मंडल, पालडी, अहमदाबाद उत्पाद शुरू , (अपील ALS CEN Document 2 6 F.NO:V2(20)188/Ahd-II/2008 that their product Pan Sugandh is ready to consume product mainly consisting of mixture of fruits, nuts and other edible parts of plants including seeds, fruits, nuts etc. Moreover they say there is no restriction either in the notes or in the tariff description restricting the Iscope of the head only to products of vegetables, fruits, nuts or other edible parts of plants. Relevant extracts of Chapter heading 2008 & 2106 are reproduced below:- 2008: "Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included." Other, including mixtures other than those of sub-heading 2009 19 2008 9999 Other 2106: "Food preparation not elsewhere specified or included" 2106 90 -- Other 2106 9070 - Chur....