Varun Beverages Ltd. Vs Commissioner of Customs (CESTAT Mumbai)
Mandarin Concentrate Taxed Under Residual Citrus Juice Category Because Tariff Separately Recognises Mandarins; CESTAT Rejects Orange Juice Classification for Mandarin Concentrate Due to Clear Legislative Scheme; No Extended Limitation in Mandarin Juice Classification Dispute Despite Duty Demand: CESTAT; Mandarin Orange Concentrate Cannot Be Classified as Orange Juice When Tariff Treats Fruits Separately: CESTAT.
In , the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Mumbai, decided the classification dispute concerning imports of “Mandarin (Kinow) Frozen Concentrate” by the appellant between 2019 and 2021. The appellant had classified the goods under Customs Tariff Item (CTI) 2009 1100 as “Orange juice – Frozen,” attracting customs duty at 35% and IGST at 12%. During audit, the department alleged that the goods were correctly classifiable under CTI 2009 3900 as “Juice of any other single citrus fruit – Other,” attracting customs duty at 50% and IGST at 12%, resulting in alleged short payment of duty exceeding Rs. 3 crore.
A less charge-cum-demand notice and later a show cause notice were issued seeking reclassification, recovery of differential duty with interest, confiscation of goods, and imposition of penalties. The Principal Commissioner confirmed the demand, ordered confiscation with redemption fine, and imposed penalty under Section 114A of the Customs Act.
