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Sweetmeat cereal bars coated with cocoa are exempt from duty

Recently CESTAT gave an important judgment dated 14th March 2019, regarding classification of supply of sweetmeat cereal bars supplied by applicant in case of Shaik Iqbal Mohammed v. Commissioner of Customs Central Excise & Service Tax, Hyderabad [2019] 110 taxmann.com 447 (Hyderabad - CESTAT) which is discussed as below:

Facts of the Case The applicant was engaged in the manufacture of sweetmeat cereal bars coated with cocoa and not coated with cocoa packed in sealed containers with various ingredients. The applicant classified the products as chikki sweet meat cereal bars under the category of Mithai which was classified under Heading No. 2106 90 99 and was eligible for an exemption from payment of duty.The adjudicating authority held that the product containing cocoa would fall under Heading No. 1806 90 90 and the product not containing cocoa was to be taxed as ready to eat packaged food under Heading No. 2106 90 99, liable to tax as per …