LexM/S. ADHUNIK FOOD PRODUCTS (P) LTD., U.P. versus COMMISSIONER OF CENTRAL EXCISE, MEERUT
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J MIS. ADHUNIK FOOD PRODUCTS (P) LTD., U.P. A v. COMMISSIONER OF CENTRAL EXCISE, MEERUT APRIL 20, 2007 [S.H. KAPADIA AND B. SUDERSHANREDDY,JJ.] B Central Excise Tarriff act, 1985-Chapter Heading 19.04 & 21.07 -/, (remoulded as Chapter Heading 21.08 during AY 1996-97)-Assessee making 'puffs ' by swelling/roasting of cereals-Demand rait"ed on accessee on ground c of misdeclaration of product-Confirmed by authorities below as well as Tribunal-Main question required to be decided was whether the 'puffe' would fall under Chapter Heading 19.04 or under Chapter Heading 21.07 (remoulded as Chapter Heading 21.08 during AY 1996-97)-But Tribunal gave no finding as to whether 'puffe' would fall under the Chapter Heading 19.04-lt did not consider various important issues questions-Matter D remanded to adjudicating authority for fresh determination. Assessee manufactures 'puffs' from cereals, namely wheat and soya nuts. The product is packed in unit containers and supplied to Integrated Child Development Scheme (ICDS) in Haryana. Department issued show cause notice raising demand on the assessee for mis-declaration of the said products as E 'chabena/prasad'. It was further alleged that the products were sold in the market under the brand name 'bonton' as breakfast cereals, high in protein and low in cholesterol and also sold to five star hospitals and public schools. In the circumstances, the assessee was asked to pay Rs.2.31 crores as duty. The demand was confirmed by the authorities below as well as the Tribunal. F Hence the present appeal. Allowing the appeal, the Court HELD: 1.1. The 'puffs' prepared from cereals cannot fall within the item 'Prasad/prasadam'. To that extent the impugned order of adjudication is G acceptable. (Para 8) (394-E) " 1.2. The main question required to be decided was whether 'puffs' made from cereals would at all fall under Chapter Heading 19.04 or whether they would fall under Chapter Heading 21.07 (remoulded as Chapter Heading 21.08 389 H 390 SUPREME COURT REPORTS [2007] 5 S.C.R. A during the Assessment Year 1996-97). In the entire discussion in the ~' impugned judgment there is no finding given by the Tribunal as to whether 'puffs' prepared from cereals would fall under the Chapter Heading 19.04. As far as 'puffs' prepared from soya nuts are concerned there is no finding as to the quantity of puffed soya nuts sold by the assessee during the requisite B period of ICDS, Haryana and the quantity of the said product sold by the assessee during the same period to public schools and five star hospitals. There is also no finding as to whether 'puffed soya nuts' were supplied to ICDS, Haryana under the brand name 'bonton' or whether they were supplied without any brand name being affixed to the unit containers. These questions ~ are important since the entry 2108.91 refers to nil rate of duty for "Other c Edible Preparations" as long as the product is supplied without a brand name. These questions are also important to be decided particularly since the General Exemption No.83 states that the benefit of exemption shall be given only if the product is a soya based food preparation for infant use. According to the assessee puffed soya nuts is a soya based food preparation under item No.25 D of the Notification No.2of1994 (General Exemption No.83). According to the assesee puffed soya nuts were supplied to the schools under ICDS programme. None of the questions have been decided. [Para 9 and 11) (394-E, F; 396-B-E) /.. - 2. In the circumstances, the judgment of the Tribunal is set aside and the matter is remanded to the adjudicating authority for fresh determination E in accordance with law. (Para 12) (396-E, F) CIVIL APPELLATE JURISDICTION: Civil Appeal No. 654 of2002. From the Judgment and Order No. 215/2001-D dated 09.11.2001 of the Customs, Excise & Gold (Control) Appellate Tribunal, New Delhi in Appeal F No. E-251/1998-D. A.R. Madhav Rao, Alok Yadav and M.P. Devnath for the Appellant. V. Shekhar, C.K. Sucharita and B.K. Prasad for the Respondent. G The Judgment of the Court was delivered by KAPADIA, J. l. A short point which arises for determination in this civil A appeal is : whether 'puffs' obtained by the swelling or roasting of cereals constitute preparations of cereals under Chapter Heading 19.04. According to the appellant 'puffs' from cereals fall under Chapter Heading 21.07 (Edible H preparations). - ' ADIRJNIK FOOD
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