CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL NEW DELHI PRINCIPAL BENCH Excise Appeal No. 50720 of 2020 (Arising out of order-in-original No. 21-45/Pr.Commr/C.Ex/GWL-II/2019 dated

12.12.2019 passed by the Principal Commissioner, CGST & Central Excise, Bhopal).

M/s. Mondelez India Foods Pvt. Ltd., …Appellant (Formerly M/s. Cadbury India Ltd.,)

25, Industrial Area, Malanpur, Distt - Bhind, (Madhya Pradesh)

VERSUS The Commissioner of CGST & …Respondent Central Excise

35-C, GST Bhawan, Arera Hills, Jail Road, Bhopal, (M.P.) - 462011.

APPEARANCE:

Shri V. Lakshmikumaran, Ms. Sukriti Das and Ms. Mehak Mehra, Advocates for the Appellant Shri Sanjay Jain, Special Counsel for the Department and Bhagwat Dayal, Authorized Representative for the Department CORAM:

HON‟BLE MR. JUSTICE DILIP GUPTA, PRESIDENT HON‟BLE MS. HEMAMBIKA R. PRIYA, MEMBER (TECHNICAL)

Date of Hearing: 18.03.2025 Date of Decision: 24.06.2025 FINAL ORDER No. 50918/2025 JUSTICE DILIP GUPTA:

M/s. Mondelez India Foods Pvt. Ltd.¹ has filed this appeal to assail the order dated 12.12.2019 passed by the Principal Commissioner, CGST and Central Excise, Bhopal² by which the demand of central excise duty proposed under twenty five show cause notices has been confirmed and ordered to be recovered with interest. Penalty has also been imposed on the appellant.

1. the appellant

2. the Principal Commissioner

2. The issue involved in this appeal is whether Perk, ULTA Perk, Perk Poppers and Wafer Uncoated Reject³ manufactured by the appellant are classifiable under Excise Tariff Item⁴ 1905 32 11 of the Central Excise Tariff Act, 1985⁵ as claimed by department, or under ETI 1905 32 90 as claimed by the appellant.

3. The appellant claims to be engaged in the manufacture of various food preparations containing cocoa, classifiable under Chapters 18 and 19 of the First Schedule to the Excise Tariff. According to the appellant, the manufactured Products are classifiable under ETI 1905 32 90 with duty @ rate of 16%/12.5% during the relevant period. Serial No. 19 of Notification No. 3/2006-CE dated 01.03.2006 (for period upto March 2012) and Serial No. 28 of Notification No. 12/2012-CE dated 17.03.2012 (for period from March 2012)⁶ prescribed reduced rate of duty of 8%⁷ on „Wafer Biscuits‟ classified under ETI 1905 32 90. The appellant cleared the Products at the reduced rate of duty claiming classification under ETI 1905 32 90 and benefit of the Exemption Notification. One more intermediate product, namely, Real Milk Chocolate was classified by the appellant under ETI 1806 31 00 and was stock transferred on duty payment @ 12.5% without availing the benefit of the Exemption Notification.

4. On scrutiny of the ER-1 returns of the appellant, the department formed a view that the Products manufactured by the appellant are classifiable under ETI 1905 32 11 instead of ETI 1905 32 90. Accordingly, 25 periodical show cause notices were issued to the

3. the Products

4. ETI

5. the Excise Tariff

6. the Exemption Notification

7. Changed to 4% w.e.f. 07.12.2008, 5% w.e.f. 01.03.2011 and 6%

w.e.f. 17.03.2012 appellant for the period from November 2006 to July 2017 alleging that the Products manufactured by the appellant deserve classification under ETI 1905 3211 and would, therefore, not be eligible for reduced rate of duty under the Exemption Notification.

5. The appellant filed a reply to the show cause notices and denied the allegations.

6. The Principal Commissioner, by the impugned order dated 12.12.2019, rejected the submissions of the appellant and confirmed the demand of differential excise duty with interest and penalty. The main reasons given by the Principal Commissioner are as follows:

“33. On perusal of the aforesaid submissions of the noticee, it appears that noticee‟s main contention that their product is wafer and not communion wafer, thus the same is classifiable under 19053290 under other wafers category. The sub heading 19053211 covers only Communion wafer coated with chocolate or containing chocolate and 190