Ameya Foods Vs Commissioner of GST & Central Excise (CESTAT Chennai)
CESTAT Chennai held that the Savoury Oats / Silk Oats are classifiable under Chapter Heading 1104 12 00 attracting NIL rate of duty and the Muesli is classifiable under Chapter Heading 1904 10 90.
Facts- The appellant M/s. Ameya Foods is engaged in the manufacture and clearance of excisable goods viz. Masala & Coriander Oats and Curry & Pepper Oats (Savoury Oats), Silk Oats (Sweet Oats), and Muesli.
The appellant contended that Savoury oats and silk oats are classifiable under CETH 1104 12 00 and attracts ‘nil’ rate of duty. According to appellant, the other product, Muesli was classifiable under CETH 190410 90 and attracts 6% of duty. After scrutiny of the agreements and analyzing the process of manufacture the department was of the view that Savoury Oats and Silk Oats are classifiable under CETH 1904 20 00 attracting @ 12% duty and that Museli is also classifiable under CETH 1904 20 00 attracting @ 12% duty.
Show cause notices for the different periods were issued to the appellants, inter alia, proposing to demand duty on Savoury Oats, Silk Oats and Muesli along with interest and for imposing penalties. After due process of law, the authorities below confirmed the demand along with interest and imposed penalty. Aggrieved, the appellants are now before the Tribunal.
Conclusion- Held that Chapter Heading 1104 deals with ‘Cereal grains otherwise worked (for example, hulled, rolled, flaked, pearled, sliced, or kibbled). It does not include cereal grains that have been roasted and do not include ‘prepared foods or cooked foods’. On the perusal of the process undertaken by the assessee in the case of Savoury Oats and Silk Oats, there was no process of the item being cooked or prepared.
Held that the Savoury Oats / Silk Oats are classifiable under Chapter Heading 1104 12 00 and the Muesli is classifiable under Chapter Heading 1904 10 90.
FULL TEXT OF THE CESTAT CHENNAI ORDER
The issue involved in all these appeals being the same, they were heard together and are disposed of by this common order.
1. Brief facts are that the appellant M/s.Ameya Foods is engaged in the manufacture and clearance of excisable goods viz. Masala & Coriander Oats and Curry & Pepper Oats (Savoury Oats) Silk Oats (Sweet Oats) and Muesli. On intelligence gathered that appellant though engaged in manufacture was clearing the goods without payment of duty, the officers of the department visited the premises of manufacture to study the process undertaken and collected relevant documents. Statements were recorded. The appellant vide letter dt. 15.07.2013 furnished copies of two agreements dt. 13.07.2011 entered with M/s.Marico Limited. One agreement was for packing of oats and the other for manufacture of Savoury Oats. The copy of their service tax registration and details of invoices were also furnished. The appellant contended that Savoury oats and silk oats are classifiable under CETH 1104 12 00 and attracts ‘nil’ rate of duty. According to appellant, the other product, Muesli was classifiable under CETH 190410 90 and attracts 6% of duty. After scrutiny of the agreements and analyzing the process of manufacture the department was of the view that Savoury Oats and Silk Oats are classifiable under CETH 1904 20 00 attracting @ 12% duty and that Museli is also classifiable under CETH 1904 20 00 attracting @ 12% duty.
2. Show cause notices for the different periods were issued to the appellants and to the Proprietor Shri I. R. Narayan, inter alia, proposing to demand duty on Savoury Oats, Silk Oats and Muesli along with interest and for imposing penalties. After due process of law, the authorities below confirmed the demand along with interest and imposed penalty, besides imposing separate penalty on the Proprietor Sri R. Narayan under Rule 26 of Central Excise Rules, 2002. Aggrieved, the appellants are now before the Tribunal.
3. The details of the appeals, the period involved and the products impugned are given in the table below :
