2026-VIL-77-CESTAT-HYD-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise – Larger Bench - Classification of the product 'Kopiko' - ‘Sugar Boiled Confectionary’ or ‘preparations with basis of coffee’ - Resspondent-assessee is engaged in the manufacture and distribution of product 'Kopiko'. The assessee has been classifying the product under Chapter Heading 1704 9090, an entry specific to 'Sugar Boiled Confectionery' and availed the benefit of 6% ad valorem duty - Revenue authorities alleged that 'Kopiko' is classifiable under CH 2101 1200, as preparations with basis of extracts, essences, concentrates, or with the basis of coffee, attracting 12% ad valorem duty - Whether the product 'Kopiko' is rightly classifiable under Heading 1704 9090 or under Heading 2101 1200 – HELD – The Heading 1704 specifically covers 'Sugar Confectionery' whereas Heading 2101 is a more general description covering 'preparations with basis of extracts, essences, concentrates, or with the basis of coffee'. Applying the principle of Rule 1 and Rule 3(a) of the General Rules of Interpretation (GRI), the specific description under Heading 1704 should prevail over the general description under Heading 2101 - The product 'Kopiko' is essentially a sugar confectionery/candy, with sugar and glucose constituting 74% of the composition, while the coffee extract is only 2.5% to 4.5%. The presence of a small amount of coffee extract as a flavouring agent would not alter the essential character of the product as a sugar confectionery - The evidence provided by the assessee, such as the classification of the same product under Heading 1704 9090 by the Customs authorities, both in India and other countries, as well as the FSSAI license granted to the assessee for manufacturing 'sugar boiled confectionery' - Applying the principle of common trade parlance in the present context, the product ‘Kopiko’ is known in the trade world as a sweet candy/sugar confectionary and not preparation of coffee extracts and is not known to be consumed as a substitute for coffee - The decision of Ahmedabad Bench of the Tribunal is affirmed and it is held that the product 'Kopiko' is rightly classifiable under Heading 1704 9090 as 'Sugar Confectionary' and not under Heading 2101 1200 as 'preparations with basis of extracts, essences, concentrates, or with the basis of coffee' – Ordered accordingly
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