Whether the Appellant was entitled to avail the benefit of exemption from Countervailing Duty (CVD) [equivalent to Excise Duty] in terms of Notification No. 02/2011-CE dated 01.03.2011 for importing the goods classifiable under chapter heading ‘2106 90’ ‘All kinds of food mixes, including instant food mixes’?

The AR submitted that the goods under importation are meant for specific age categories and as per the literature, the indications for use of the products have been mentioned which clearly show that the products are to be consumed for specific medical conditions and, therefore, it cannot be considered as food mixes.

The Hon’ble CESTAT after perusing the literature distinguished the case law cited by the AR, observed that the “Pediasure” is an instant food consisting of starch, sugar, oil, etc., with minor quantities of minerals and vitamins. The product “Ensure” is also a similar product mainly consisting of starch, sugar, protein with minor quantities of vitamins and minerals and this is for consumption by the elderly people, who need essential nutrition in their diet. The product is consumed by mixing them with water. From the product literature available, it is clearly seen that they are food mixes meant for different age group. The notification covers “all food mixes including the instant food mixes. The notification does not stipulate that it should be for consumption by all people or by all age groups.

Holding that the products imported by the appellant falls within the category of food mixes and the appellant would be eligible for the benefit of Sr. 8 of the table of Notification No. 02/2011-CE dated 01.03.2011 in respect of CVD, the appeals were allowed with consequential relief.