TaxTMI 
TaxTMI 
2004 (9) TMI 264
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....pugned order or under sub-heading No. 2108.20 of the Tariff, as claimed by Revenue. 2. We heard Shri D.N. Choudhary, learned Senior Departmental Representative and Shri U. Raja Ram, learned Departmental Representative for Revenue and Shri Shekhar Vyas, learned Advocate for the Respondents. The manufacturing process of both the impugned products as described by the Respondents and agreed by the Adjudicating Authority is as under : "A. Thandai Almonds are washed and thereafter soaked in water to ease the peeling off. A mixture of Khus khus, Magaz, saunf, white pepper and cardamom which are parts of plants are also soaked in water. Thereafter, the peeled almonds and mixture is grinded with the help of machine grinders a....
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....uch as cooking; dissolving or boiling in water, milk or other liquids), for human consumption"; that the impugned products also are preparations which are used after dissolving and thus satisfies the criterion mentioned in Note 9(b) to Chapter 21 of the Tariff. He relied upon the decision in the case of MTR Food Products v. CCE, Bangalore, 2000 (118) E.L.T. 392 (T) wherein the Tribunal has classified the Product "Badam Feast" under Heading 21.08 as the direction for its use shows that the product has to be dissolved in milk before it can be consumed as such and the item is sold in the form of powder. The learned Senior Departmental Representative contended that when statutory definition of Sharbat is given in Chapter 21 of the Tariff, commo....
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....25%). 4. On the other hand, Shri Shekhar Vyas, learned Advocate, submitted that from the manufacturing processes of the impugned products, it is apparent that these are preparations of vegetable, nuts or other parts of plants as they contain badam between 10 to 15% and the added flavours are all natural and are the parts of plants; that the preparation of vegetables nuts or other parts of plants are specifically covered under Chapter 20 of the Tariff; that Chapter 21 deals with Sharbat which are otherwise also known as Synthetic syrup; that as per the book "Wealth of India", "synthetic syrups commonly known as Sharbats are sugar syrups containing extracts of natural materials or artificial flavours and colours .... Use of fruit juice in ....
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....ups or sharbats; that Chapter 21 nowhere deals with nuts or preparation thereof whereas Chapter 20 deals with preparations of nuts; that there is no dispute that the impugned products are preparation of nuts which contain about 10-15% of almonds and accordingly Chapter 20 is more specific wherein these products should be classified. He submitted that Sharbat is prepared first by taking the sugar syrup and then the flavour is added to it whereas Thandai is made by grinding a mixture of almonds and then sugar syrup is added to it; that the essential characteristics of almonds which gives high nutritional value is not present in the case of Sharbat. He referred to the opinion given by a Technical Expert, Dr. D.S. Chadha, Asstt. DG (PFA) accord....
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.... jellies, marmalade, fruit or nut puree and fruit or nut paste, fruit juices and vegetables juices, whether or not containing added sugar or other sweetening matter. 21.08 Edible preparations, not elsewhere specified or included 2108.20 - Sharbat 7. Heading 20.01 covers within its ambit preparations of nuts. The manufacturing processes as detailed by the respondents and not disputed by the Revenue clearly show that both the impugned products are preparations of Almonds (Badam) which are nuts. The Heading 20.01 further mentions that the preparations covered by the Heading may or may not contain sugar or other sweetening matter. Thus both the products which are p....
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....that Heading No. 21.07 is a residual Heading, we are of the opinion that the subject squashes and cordials which are preparations of fruit juices are correctly classifiable under Heading No. 20.01, sub-Heading No. 2001.10." The Explanatory Notes of HSN below Heading No. 21.06 "Food Preparations not elsewhere specified or included" clearly mentions that the Food Preparations fall under this Heading "provided that they are not covered by any other Heading of the Nomenclature." It is thus apparent that for classifying any edible preparation in Heading 21.08, it has to be shown by Revenue that the said preparation is not elsewhere specified or included. Once it is not disputed that the impugned products are preparation of nuts, they cannot be t....