ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 03.07.2025
CESTAT Chennai Remands Classification Dispute on Flavour Compounds for Fresh Adjudication
The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chennai remanded a long-standing classification dispute concerning the import of Mixtures of Odoriferous Substances (MOS) used in flavour manufacturing back to the Adjudicating Authority for fresh adjudication. The case involved M/s. Givaudan India Pvt. Ltd. and its former director.
Case Summary
- Appellants: M/s. Givaudan India Pvt. Ltd. and its Director
- Department Allegation: Misclassification of 26 imported MOS compounds
- Original Classification: Subheadings under CTH 1302, 2906, and 3302.90.90
- Department Proposal: Reclassification under CTH 3302.10 (Compound alcoholic preparations used for manufacture of beverages)
- Issue: Whether the imported flavour compounds were of a kind used in the manufacture of beverages
The Directorate of Revenue Intelligence (DRI) alleged that the products contained ingredients such as ethyl alcohol, isopropyl alcohol, and propylene glycol, and were hence compound alcoholic preparations. The department also initiated proceedings for denial of exemption, confiscation, and imposition of penalties under Sections 111(m), 114A, and 112(a) of the Customs Act, 1962.
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: CESTAT Chennai
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