c

Case Law Details

Case Name : Varun Beverages Limited Vs Commissioner, Central Excise (CESTAT Allahabad)
Appeal Number : Excise Appeal No. 52835 of 2015
Date of Judgement/Order : 10/11/2021
Related Assessment Year :

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.

Nimbooz classified under Category of Fruit Juice based Drinks and not Lemonade, No GST payable CESTAT

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).

(Author can be reached at [email protected])

Download Judgment/Order

Author Bio

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Whatsapp

taxguru on whatsapp WHATSAPP GROUP LINK

Join Taxguru Group on Telegram

taxguru on telegram TELEGRAM GROUP LINK

More Under Excise Duty

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

January 2022
M T W T F S S
 12
3456789
10111213141516
17181920212223
24252627282930
31