- (1.) The question in these appeals is whether 'French Fries' should be classified under sub-headings 2001.10 or 2001.90 of Chapter 20 of the Central Excise Tariff Act, 1985. The two entries read as follows :- Heading No. Subheading No. Description of goods Rate of Duty (1) (2) (3) (4) 20.01 Preparations of vegetables, fruit, nuts or other parts of plants including jams, fruit jellies, marmalades, fruit or nut puree and fruit or nut pastes, fruit juices and vegetable juices, whether or not containing added sugar or other sweetening matter. 2001.10 - Put up in unit containers and bearing name. 8% 2001.90 - Other -Nil
(2.) The appellant manufactures French Fries and sells the same sometimes under the brand name 'Inland Valley' and sometimes without any such name. Those packets of "French Fries which bear the name of 'Inland Valley' are cleared by the appellant under T.H. 2001.10 and the relevant excise duty is paid thereon. Those packets which do not contain the name 'Inland Valley' are cleared under T.H. 2001.90 and no excise duty is paid.
(3.) The Department was of the view that the second lot of goods should also have been cleared by the appellant under T.H. 2001.10. A show cause notice was issued to the appellant seeking to levy duty which was allegedly short levied. The demand was confirmed by the Asstt. Commissioner, Central Excise. The Commissioner, however, reversed the finding of the Asstt. Commissioner and held that the packets of the 'French Fries' which did not contain the words 'Inland Valley' were assessable under T.H. 2001.90 and not under T.H. 2001.10. The demand raised was accordingly quashed. Being aggrieved the department preferred an appeal before the Tribunal. The Tribunal came to the conclusion that the Commissioner was wrong and held that the second type of packing was very similar to the first type and, therefore, was also classifiable under T.H. 2001.10.;