CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL CHANDIGARH REGIONAL BENCH - COURT NO. I Excise Cross Application No. 60048 of 2017 In Excise Appeal No. 60544 of 2016 [Arising out of Order-in-Appeal No. 246-247/CE/Appeal-II/Delhi/2016 dated

22.08.2016 passed by the Commissioner (Appeals-II), Central Excise, Delhi]

Commissioner of Central Goods & Service ……Appellant Tax, Faridabad GST Bhawan, New CGO Complex, NH-IV, Faridabad, Haryana 121001 VERSUS M/s Varun Beverages Ltd ……Respondent Village Tajpur Ujina, Nuh Hodal Road, Post Ujina, The. Nuh, Dist. Mewat, Haryana 122107 APPEARANCE:

Ms. Amita Gupta, Authorized Representative for the Appellant Shri Bimal Jain, Advocate for the Respondent CORAM: HON’BLE MR. S. S. GARG, MEMBER (JUDICIAL) HON’BLE MR. P. ANJANI KUMAR, MEMBER (TECHNICAL)

FINAL ORDER NO. 60148/2026 DATE OF HEARING:12.02.2026 DATE OF DECISION:12.02.2026 S.S.GARG:

The present appeal has been filed by the Revenue against the impugned order in appeal dated 22.08.2016, whereby, the learned Commissioner has classified the impugned goods i.e. Nimbooz Masala Soda under tariff item number 22021020.

2. Briefly the facts of the present case are that the appellant is engaged in manufacturing of Non-Sweetend aerated water & fruit juice drink falling under Chapter Heading No. 22029020 of the Central Excise Tariff Act, 1985. The respondent filed refund claims with the Divisional office on identical grounds for refund of amount deposited under protest on clearance of fruit juice namely 'Nimbooz Masala Soda". Since, the refund claims were not found tenable, show cause notices were issued to the respondent asking them to explain as to why the claims should not be rejected. The respondent filed the reply to the show cause notice and claimed that Nimbooz Masala Soda is a fruit juice based drink is made up of 5% real juice. It is lemon juice based drink with added carbonation and masala to enhance taste and is made of real lemon juice classifiable under chapter 22029020 and chargeable to duty @ 2% (without CENVAT) or 6% (with CENVAT) as the case may be. The said show cause notices dated 01.12.2014, 02.12.2014, 31.08.2015 and 27.10.2015 were adjudicated by the Assistant Commissioner, Gurgaon vide Order dated 30.10.2015 and all the refund claims were rejected under section 11B of the Central Excise Act, 1944. Aggrieved by the said order, the respondent filed the appeal before the Commissioner (Appeals) against the rejection of the refund claim and learned Commissioner (Appeals) returned back the matter to the Adjudicating Authority with direction to get the NMS examined in the lab of the Food Safety and Standards Authority of India and decide the matter in the light of verification report. Aggrieved by the said order, the Revenue has filed the present appeal.

3. Heard both the parties and perused the material on record.

4. Learned authorized representative for the revenue submits that the impugned order is not sustainable in law in terms of Section 35A of the Central Excise Act, 1944 which mandates the Commissioner (Appeals) can, after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, confirming, modifying or annulling the decision or order appealed against. She further submits that the learned Commissioner is not mandated to remand back a case to the Original Authority for de- novo proceedings. She further submits that NMS satisfied all the ingredients and is required to be classified under tariff heading

22021020.

5. On the other hand, learned counsel for the respondent submits that this issue is no more res integra and the Larger Bench of the Tribunal in the appellant’s own case and the Division Bench of Allahabad in the appellant’s own case by following the Larger Bench has held that the goods under dispute are classifiable under tariff item number 22029020 which is for category of fruit pulp or fruit juice based drinks. The learned Counsel for the appellant in support of his submissions has relied