TaxTMI 
TaxTMI 
2005 (12) TMI 93
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....90. The Tribunal classified the product under Chapter Heading 2001.90. Facts : 3.Respondents are engaged in the manufacturing of P.P. Ayurvedic Medicaments falling under Chapter Heading 3003.30 of the Schedule to the Central Excise Tariff Act, 1985 (for short "the Tariff Act"). The respondents had filed a classification list effective from 25-4-1994 for the product "Herbonic" put up ordinarily for sale in unit containers under sub-heading 2001.90 declaring the same to be a preparation of vegetables, nuts and other parts of plants and fruits/seeds claiming nil rate of duty under Notification No. 2/94 dated 1-3-1994 whereas as per appellants the product is a mixture of assorted vegetables and dry fruits or seeds and is a health vitalizer being used for all round growth and improvement of memory and general health of children and adults and the product merits classification under sub-heading 2107.91 chargeable to duty at the rate of 20% ad valorem. After the Budget of the year 1995-96 the product was reclassified under sub-heading 2108.90. Appellant issued show cause notices no. C. No. V[30]3/49/96/Div. IV/3405, C. No. V[30]3/106/Div. IV/6332 dated 26-6-1994, C....
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....ded sugar or other sweetening matter 2001.10 Put up in unit containers and bearing a brand name 16% 2001.90 Other Nil 9. Entry 21.08 under Chapter 21 which deals with miscellaneous edible preparations reads as under :- Heading No. Sub-heading No. Description of goods Rate of Duty (1) (2) (3) (4) 21.08 Edible preparations, not elsewhere specified or included 2108.10 - Preparations for Lemonades or other Beverages intended for use in the manufacture of Aerated Water 16% 2108.20 - Sharbat 16% 2108.30 - Prasad or Prasadam Nil 2108.40 - Sterilised or Pasteurised Miltone Nil - Other : 2108.91 - Not bearing a brand name Nil 2108.99 - Other 16% 10.Entries of Chapter 20 of harmonized commodity description and coding system (Harmonised System of Nomenclature called "HSN") dealing with the preparation of vegetables, fruits, nuts or other parts of plants which corresponds to Chapter....
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....ariff Act, 1985 is the adoption of a detailed Central Excise Tariff based broadly on the system of classification derived from the International Convention called the 'Brussels' Convention on the Harmonised Commodity Description and Coding System (Harmonised System of Nomenclature called "HSN") with the necessary modifications. If the expression used in the Tariff Act and HSN is the same then the meaning which is expressly given in the HSN should be preferred in the absence of anything to the contrary given in the Tariff Act. For this he has relied upon the judgment of this Court in Collector of Central Excise, Shillong v. Wood Craft Products Ltd. [1995 (77) E.L.T. 23] in which it has been observed :- "12. It is significant, as expressly stated, in the Statement of Objects and Reasons, that the Central Excise Tariffs are based on the HSN and the internationally accepted nomenclature was taken into account to "reduce disputes on account of tariff classification". Accordingly, for resolving any dispute relating to tariff classification a safe guide is the internationally accepted nomenclature emerging from the HSN. This being the expressly acknowledged basis of the structu....
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....eral description." Since the respondent's preparation is covered by entries in Chapter 20, the same should be preferred to the residuary clause in Chapter 21 which is of general description. Relying upon the judgments of this Court in Bharat Forge & Press Industries (P) Ltd. v. Collector of Central Excise [1990 (45) E.L.T. 525], Indian Metals & Ferro Alloys Ltd. v. Collector of Central Excise [1991 (51) E.L.T. 165], Speedway Rubber Co. v. Commissioner of Central Excise, Chandigarh [2002 (143) E.L.T. 8] and C.C. (General), New Delhi v. Gujarat Perstorp Electronics Ltd. [2005 (186) E.L.T. 532], it was contended that the Heading Note which is more specific should be preferred to the residuary clause. Findings : 16.The product under reference is a mixture of assorted vegetation and dry fruits and seeds. That different vegetations namely Khas Khas, Aswagandha & Brahmi Booti is turned into powder and processed in Khas Khas and giri badam (almond) oil and then the whole mixture is processed in sugar syrup under vacuum and thereafter choti illayachii (cardamom) and roof kewara are added as flavour. Since the product "Herbonic" is mixture of different vegetation it is rightly been....
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....ing and interpretation of Item 26AA." 19.In Speedway Rubber Co. (supra) this Court observed in Para 23 as under :- "23. We may notice that as per Rule 3(a) of the Interpretation Rules to Central Excise Tariff Act, 1985, "The heading which provides the most specific description shall be preferred to headings providing a more general description." 20.In C.C. (General), New Delhi (supra) it was observed in Para 57 as under :- "57. There is still one more aspect which is relevant. It cannot be disputed and is not disputed before us and is also concluded by a decision of a three Judge Bench in Associated Cement Co. Ltd. that the basic heading is 49.01. It deals with "Printed books, brochures, leaflets and similar printed matter, whether or not in single sheets". 49.11 covers "Other printed matter, including printed pictures and photographs". Thus, specific or basic heading is 49.01 and residual entry is 49.11. Priority, therefore, has to be given to the main entry and not the residual entry. According to the Company, the case is covered by the main entry under 49.01, and in that view of the matter, one cannot consider the residual entry 49.11." 21.Since in the prese....