M/S. ADHUNIK FOOD PRODUCTS (P) LTD.,U.P. vs COMNR. OF CENTRAL EXCISE, MEERUT

The Supreme Court determined that 'puffs' made from cereals, specifically wheat and soya nuts, fall under Chapter Heading 19.04 as 'prepared foods obtained by the swelling or roasting of cereals' rather than Chapter Heading 21.07 for 'edible preparations'. The Court held that the classification of the product is crucial for determining the applicable duty, which was confirmed as Rs.2.31 crores for mis-declaration. The appeal was dismissed, affirming the lower authorities' decision regarding the classification and duty demand.