KELLOGG INDIA PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition filed under Article 226 of the Constitution of India arises out of dispute between the petitioners and the Central Excise Department (respondents herein), which centers around the question: whether the product of the petitioners, viz. "CHOCOS" is classifiable under Chapter Sub-heading No.1904.10 or Chapter Sub-heading No.1804.00 of the Tariff Act? Factural Background:

(2.) FILTERING out unnecessary details, the factual background relevant to the present dispute is as follows:

(3.) IT appears that the samples of the product of the petitioners known as "CHOCOS" were analyzed by the Deputy Chief Chemist, Central Excise, Mumbai; whose test reports dated 10th March, 1996 and 19th March, 1996 revealed amongst others that the content of ‘cocoa’ therein exceeded the minimum limit of 6% as stipulated in Note No.2 of Chapter 19 of the Tariff Act. This led the Central Excise Department/ the respondents to form a prima facie; opinion that the subject product needed to be classified under Chapter Sub-heading No.1084.00 and not under Chapter Sub-heading No.1904.10 as sought to be classified by petitioner No.1. 5.A show-cause-notice was issued to the petitioners calling upon them to show cause as to why their product ‘CHOCOS’ should not be classified under Chapter Sub-heading No.1084.00 of the Tariff Act and, the classification declaration filed under rule 173-B of the Central Excise Rules, 1944 by them during the financial year 1996-97 till the date of show-cause-notice be not accepted accordingly.