2019 (9) TMI 1221

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....r brand name 'COCON' and has classified the same under Customs Tariff sub heading 17049090. They were availing benefit of exemption notification No. 46/2011 - Cus dt. 01.06.2011. They were issued show cause notice dt. 04.03.2015 alleging that the goods are classifiable under chapter sub heading 21069099 and the exemption has been wrongly claimed. A differential duty of Rs. 21,42,792/- was demanded from them alongwith interest and to impose penalty. The demands were set aside by upholding the classification by the Additional Commissioner of Customs. The revenue filed appeal against the said order before Commissioner (Appeals), Custom, Ahmedabad who set aside the order and allowed the appeal filed by the revenue. Aggrieved the Appellant has f....

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....ts that heading 17.04 covers Sugar confectionary not containing Cocoa. Some items specified therein are Chewing gum, Jelly Confectionary, Boiled Sweets, Toffees, Caramel and Similar Sweets. Consequentially the Jelly Puddings in question which are sweet meats prepared by confection will also be covered under heading 17.04. He also takes us through HSN Explanatory Note under chapter 17.04. he submits that as per Rule 3 of General Rules for interpretation of the First Schedule to the Customs Tariff Act, 1975, the heading which provides the most specific description shall be preferred. The 17049010 is more specific rather than 21.06 which is applicable to food preparation. That the contention of the revenue that supplementary note 5 to chapter ....

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....tc. (heading20.07)". That the impugned goods contains various ingredients other than sugar such as Nata De coco having percentage from 9.80% to 17.25% alongwith fruit extracts with 5%. The explanatory notes indicate that sweetened food preparation preserved by sugar and jams, fruit jellies are not covered under chapter 17.04 but under chapter 20.06 or 20.07 and further since the impugned goods are not sweetened preparations of vegetables, fruits preserved by sugar, therefore the same are excluded from the purview of the heading 20.06/ 20.07 and consequentially such goods are classifiable under the residual heading on 21.06 which covers food preparations not elsewhere specified. 5. We find that Chapter sub heading 1704 covers "Sugar Confe....

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.... held as under : "5. We have gone through the records of the case carefully. After going through the information furnished with regard to the impugned product 'FUNDA' and also Glucose D, we find that both the product contain sucrose/sugar nearly 99%. We also find that the Board's Circular cited by the learned Advocate classifies Glucose D under Chapter 17. Therefore, there is no reason as to why the impugned product, which is very similar to Glucose D, should be classified under Chapter 21. This point has not been examined by the lower authorities. Further, Chapter Heading 21.06 is a residuary heading. It should be resorted to if the impugned products cannot be classified elsewhere. Further, on going through Note 6 of Chapter 21, w....