Circular No. 8/90-CX.1 Dated 19-3-1990

Central Excise - Classification of fruit pulp drinks like Maaza and other products - whether under heading 20.01 or under heading 22.02 of Central Excise Tariff.- Reference Board’s Circulars No. 12/88-CX.1 from F. No. 16/5/87-CX.1, dated 28-3-1988 and No. 31/88-CX.I from F. No. L6/3/88-CX.1 dated 20-12-1988 regarding classification of fruit pulp based juices like Maaza Doubts continued to be raised regarding the classification of similar products like Frooti, Maaza etc. whether under Heading 20.01 as fruit juices or under Heading 22.02 as beverages.

2. The said issue was also discussed in the North Zone Tariff Conference held on 18th & 19th September, 1989 at Chandigarh. The Conference took note of the HSN Explanatory Note below Heading No. 20.09 (Fruit Juices) given at page 154 and observed that the addition of a greater quantity of water than was necessary to re-constitute the original natural juice, results in diluted products, and hence the resultant product would appear to be classifiable under Heading 22.02 as “Beverages”. The conference has also observed that “Frooti” contained 60% or so of added water, hence it appeared to be a “beverage”, falling under CET Heading 22.02.

3. The issue has been further examined in the Board. The Board noted that H.S.N. Heading No. 20.09 corresponds to the relevant portion of Central Excise Tariff Heading 20.01. As per Explanatory Notes at page 154 under H.S.N. Heading 20.09, the addition of water to fruit juices or the addition of a greater quantity of water than was necessary to reconstitute the original natural juice out of concentrated juices, results in diluted products and the resultant product would go out of H.S.N. Heading 20.09 and would be classifiable under H.S.N. Heading 22.02 as non-alcoholic beverages which corresponds to Central Excise Tariff Heading 22.02. By H.S.N. definition, Frooti or like diluted drinks, containing added water, would be classifiable as beverages under Heading 22.02. In view of the above, the Board decided that the products like Frooti, Maaza, etc. in question are classifiable under Central Excise Tariff Heading 22.02.

4. Board’s instructions in Circular No. 12/88-CX.1 from F. No. 16/5/87, dated 28-3-1988 and Circular No. 31/ 88-CX.1 from F. No. 16/3/88-CX.1, dated 20-12-1988 should be treated as modified as above.

5. This may be brought to the notice of the field formations and trade interests. This disposes off Chandigarh Collector’s reference in C. No. V(Review)-53/CE/APPL/AAR/89, dated 25-1-1990.

[F. No. 16/6/89-CX.1]