Case Law Details
Varun Beverages Limited Vs Commissioner, Central Excise (CESTAT Allahabad)
Nimbooz classified under the category of fruit juice based drinks and not lemonade: CESTAT
In M/s Varun Beverages Ltd. v. Commissioner, Central Excise [Final Order No. 70253/2021 dated November 10, 2021] Hon’ble Customs, Excise & Service Tax Appellate Tribunal, Allahabad (CESTAT) held that Nimbooz by 7 UP and Nimbus masala soda by 7 UP are classifiable under chapter heading 22029020 of the First Schedule to the Central Excise Tariff Act, 1985 (CET Act) which is for category of fruit pulp or fruit juice based drinks and thus M/s Varun Beverages Ltd. (Appellant) is entitled to consequential benefits, in accordance with law.
The revenue disputed that during the period February, 2009 to December, 2013 these beverages are classified under chapter heading 22021020 and not under chapter heading 22029020, as claimed by the Appellant, and hence liable to excise duty as lemonade.
Hon’ble CESTAT, observed that similar issue had arisen earlier in the Appellant’s own case before this Tribunal and vide final order dated July 15, 2019, this Tribunal referred the order to the larger bench decision of this Tribunal dated April 30, 2019, – 2019 (29) GSTL 418 (L.B.) wherein it has been held that these goods under dispute are classifiable under tariff item No. 22029020, which is for the category of fruit pulp or fruit juice-based drinks.
Relied upon the ruling of the Larger Bench and Division Bench in the Appellant’s own case and allowed the present appeal.
Held that, Nimbooz by 7 UP and Nimbus masala soda by 7 UP are classifiable under chapter heading 22029020 of the first schedule to the CET Act, which is for category of fruit pulp or fruit juice based drinks and thus the Appellant is entitled to consequential benefits, in accordance with law.
FULL TEXT OF THE CESTAT ALLAHABAD ORDER
Heard both sides.
2. The issue involved in this appeal relates to classification dispute.
3. The appellants manufacture beverages such as ‘Nimbooz by 7 UP’ and ‘Nimbus Masala Soda by 7 UP’ and classified them under chapter heading 22029020 (fruit pulp or fruit juice based drinks) of the First Schedule to the Central Excise Tariff Act, 1985 (CETA in short) . Revenue disputed the classification opining that these these beverages are classified under Chapter Heading 22021020 and not under CTH 22029020, as claimed by the appellant and hence liable to excise duty as Lemonade. The period involved is February, 2009 to December, 2013 and is covered under two successive show cause notices.
4. Similar issue had arisen earlier also in appellant’s own case and others before this Tribunal, and vide Final Order Nos. 71374 – 71377/2019 dated 15.07.2019, this Tribunal referred the order to the Larger Bench decision of this Tribunal dated 30.04.2019, – 2019 (29) GSTL 418 (L.B.) wherein it has been held that these goods under dispute are classifiable under tariff item No. 22029020, which is for category of fruit pulp or fruit juice based drinks.
5. Accordingly, following the ruling of the Larger Bench and Division Bench in appellant’s own case, it is held that the demand raised in this appeal is fit to be set aside. We, therefore, allow the appeal by setting aside the impugned order. The appellant is entitled to consequential benefits, in accordance with law.
(Pronounced on 10.11.2021).
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