The Kolkata Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has ruled that 12% Integrated Goods and Service Tax (IGST) is payable on ‘Lemoneez’ import from Nepal to India.
The bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) has observed that the term ‘soft drink’ is per se different from the fruit juices inasmuch as the soft drinks are commonly understood to be aerated beverages/ preparations containing merely essences or flavours with no actual juice content. Thus, treating the lemon juice concentrate as soft drink concentrate is factually as well as legally untenable.
The appellant/assessee, Dabur India Limited has imported various types of ‘fruit pulp’ or ‘fruit juices’ or ‘fruit juice-based drinks’, including inter alia ‘Lemoneez’ from Nepal into India. Ashok Kumar Sinha was acting as the Custom House Agent for Dabur India during the relevant period. The goods were imported and cleared for home consumption classifying it under Tariff Item 2202 99 20 charging 12% IGST.
A revenue risk report was received by Commissioner of Customs, Patna from Additional Director General, NCTC, DGARM, Mumbai, alleging short-payment of customs duty by Dabur India by resorting to wrong classification of the goods under Tariff Item 2202 99 20 when as per the Department, the same is appropriately classifiable under Chapter Heading 2106 chargeable to 18% IGST.
The issue involved was in respect of classification of the imported product i.e., whether ‘Lemoneez’ is appropriately classifiable under residuary item 2106 90 19 as a soft drink concentrate as alleged by the Revenue or under Tariff Item 2009 31 00 (juice of a single citrus fruit), as contended by the appellants.
The tribunal noted that Lemoneez is used for preparation of lemonade, lemon tea, for marinade chicken/ meat and also used for preparation of salads and Indian curries and hence, alleged that ‘Lemoneez’ is not merely a juice/ juice concentrate but is also an ‘edible preparation’.
The tribunal held that the goods are rightly classifiable under Tariff Item No. 2009 31 00 being the juice of a single citrus pulp as claimed by the appellant. The differential IGST demanded in the impugned order is set aside. Since the demand is held to be not sustainable, the question of demanding interest or imposing penalties on Dabur India does not arise.
Case Details
Case Title: M/s. Dabur India Limited Versus Commissioner of Customs
Case No.: Customs Appeal No. 75364 of 2025
Date: 08.05.2025
Counsel For Appellant: Rahul Tangri and Ekta Jhunjhunwala
Counsel For Respondent: Subrata Debnath
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