Hindustan Coca Cola Beverages Pvt. Ltd. Vs Commissioner of Central Excise (CESTAT Hyderabad)
In the case of Hindustan Coca Cola Beverages Pvt. Ltd. vs. Commissioner of Central Excise, the issue revolved around the classification of “Minute Maid Nimbu Fresh,” a product manufactured by the appellant. The dispute arose when the Central Excise department issued a Show Cause Notice (SCN) challenging the classification of the product under Chapter Sub-heading 22029020 (fruit pulp or fruit juice-based drinks) instead of 22021020 (lemonade) of the Central Excise Tariff Act, 1985, for the period between April 2011 to August 2012.
Hindustan Coca Cola Beverages Pvt. Ltd. had classified “Minute Maid Nimbu Fresh” under 22029020, availing a duty rate of 5%. The department, through the SCN, demanded higher duty rates (10% initially, increasing to 12% from March 2012 onwards) applicable to lemonade under 22021020, totaling Rs. 31,06,969. The adjudicating authority in the Order-in-Original dated 30.09.2014 upheld this classification, imposing a demand along with penalties and interest.
The appellant contested this decision before the Commissioner (Appeals), arguing that “Minute Maid Nimbu Fresh” should rightly be classified under 22029020 as a fruit juice-based drink, not as lemonade. The Commissioner (Appeals) upheld the classification under 22021020 but reduced the penalty imposed. Dissatisfied with this partial relief, Hindustan Coca Cola Beverages Pvt. Ltd. appealed to the CESTAT Hyderabad.
