Coca Cola's "Minute Maid Nimbu Fresh" Is Classifiable As “Fruit Pulp Or Fruit Juice Based Drinks”: Allahabad CESTAT

The Allahabad Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the product “Minute Maid Nimbu Fresh” is classifiable under Tariff Item 2202 90 20 of the Central Excise Tariff Schedule under the category of “fruit pulp or fruit juice-based drinks.”.

The bench of P. K. Choudhary (Judicial Member) and Sanjiv Srivastava (Technical Member) has observed that even when lime juice is added but the fruit content of lime or lemon juice is not less than 5%, the product would be classified as fruit juice-based drinks, but if the lime or lemon juice content is less than 5%, then it would be classified as lemonade.

The appellant/assessee, M/s Hindustan Coca-Cola Beverages Pvt. Ltd., is in the business of manufacturing aerated drinks and fruit pulp or fruit juice-based drinks under different brand names.

The assessee commenced the production of "Minute Maid Nimbu Fresh" in a 200-ml pack in a returnable glass bottle on March 19, 2011, and classified it under Tariff Heading 2202 9020 as fruit pulp or fruit juice drink. The assessee was duly clearing it at the rate of 5% duty.

A show cause notice was issued to the assessee, proposing to recover Central Excise Duty payable on the product during the period April 2011 to August 2012, on the grounds that the appellant has misclassified the product as fruit pulp or fruit juice drink under Chapter Sub-heading 22029020 instead of 'Lemonade' under Chapter Sub-heading 22021020. Therefore, the assessee has contravened various provisions of the Central Excise Rules, 2002.

In the Show Cause Notice, it was alleged that the appellant is required to pay 10% duty during the period from March 19, 2011 to March 16, 2012 and 12% duty from March 17, 2012 onwards on the transaction value on the clearances of the product by classifying the product under Chapter Sub-Heading 22021020.

The Additional Commissioner held that the product is to be classified as 'Lemonade' and confirmed the duty demand with an equivalent amount of penalty.

The assessee contended that the fruit juice content of lime or lemon juice in MMNF, Nimbu Masala Soda, or Nimbooz has been indicated to be not less than 5%, and the total soluble solids are also not less than 10%. The product would be classified under Tariff Item No. 2202 90 20 as fruit juice-based drinks.

The tribunal, while relying on the various decisions, allowed the appeal of Hindustan Coca-Cola Beverages and quashed the orders passed by the adjudicating authority.

Counsel For Appellant: Atul Gupta

Counsel For Respondent: Manish Raj

Case Title: M/s Hindustan Coca Cola Beverages Pvt. Ltd. Versus Commissioner of Central Excise

Case No.: Excise Appeal No.52811 of 2015

Click Here To Read The Order