2026 (4) TMI 1681

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....led a Bill of Entry dated 18.06.2015. On the basis of the test report given by Deputy Chief Chemist, Revenue sought to reclassify the goods under CTI 2103 90 40 and accordingly issued a show cause notice dated 24.11.2015 which was confirmed in order-in-original dated 21.12.2015. The original authority imposed a fine of Rs.1,75,000/- in lieu of confiscation and a penalty of Rs.25,000/- on the appellant. 2. On appeal filed by the appellant, learned Commissioner of Customs (Appeals), Mumbai-II upheld the order-in-original. 3. Shri Sanjay Singhal, learned counsel for the appellant submits that the health certificate issued at the foreign port indicated the ingredients of the impugned goods as follows: "a. Food Seasoning Material ....

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.... No. 252 dated 9.7.2015 (SA1058.002) - The sample is in the form of Orange Coloured Powder having spicy odour. It is a food preparation containing Salt, Maltodextrin, Carbohydrate, Proteineous matter, inorganic phosphate, flavouring Agent and additive. It is free from Alcohol." 5. The learned counsel further submits that the impugned order ignores the HSN Explanatory Notes to Customs Tariff Heading 3302 which covers the goods containing one or more odoriferous substances combined with added diluents or carriers such as vegetable oil, dextrose or starch. The finding of the appellate authority that the goods of Heading 3301 are not present in the goods is incorrect as the list of the goods appended to Chapter 33 include paprika, parsley an....

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....nexure to Heading 3302. We also find that it contains paprika, an extracted oleoresins. 10. Learned counsel for the appellant submits that the original authority and the appellate authority have misread the Explanatory Notes to mean that the odoriferous substances should be predominant in the mixtures which does not seem to be a correct appreciation of the provisions which only refer to provisions of one or more such odoriferous materials. 11. We find that the impugned order while extracting the provisions of Heading 3302 wrongly observes as under: "On this basis, the Original Authority with the help of the Chapter Note/ Section Note and the HSN of both the rival entries, and as well as the definition of Seasonings from Wikip....

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....ed or both, which are used as raw materials in the perfumery, food or drink industries. 14.2 The appellant's submission is that the subject goods consists of various odoriferous substances and what is imported i.e., the tomato flavour, is of synthetic origin, which makes it classifiable under CTH 3302 1010. The Ld. adjudicating authority has relied on Chapter Note 2 to Chapter 33 of the Customs Tariff Act, 1975, which states that "odoriferous substances" in Chapter Heading 3302 refers only to substances of Chapter Heading 3301 to odoriferous constituents isolated from those substances or to synthetic aromatics, and also referred to the HSN, which states that the goods which qualify for classification under Chapter Heading 3302 ....