12% IGST Is Leviable On Imported 'Lemoneez' Drink: CESTAT

The Bench of Ashok Jindal (Judicial Member) and K. Anpazhakan (Technical Member) was addressing the issue of whether 'Lemoneez' is appropriately classifiable under residuary item 2106 90 19 as a soft drink concentrate [under miscellaneous edible preparations, not elsewhere specified], or under Tariff Item 2009 31 00 (juice of a single citrus fruit).

The Tribunal observed that “the term 'soft drink' is per se different from the fruit juices inasmuch as the soft drinks are commonly understood to be aerated beverages/ preparations containing merely essences or flavours with no actual juice content. Thus, treating the lemon juice concentrate as soft drink concentrate is factually as well as legally untenable.”

In this case, the assessee/M/s. Dabur India Limited has imported various types of 'fruit pulp' or 'fruit juices' or 'fruit juice-based drinks', including inter alia 'Lemoneez' (impugned goods) from Nepal into India.

A revenue risk report was received by Commissioner of Customs, from Additional Director General, alleging short-payment of customs duty by the assessee by resorting to wrong classification of the impugned goods under Tariff Item 2202 99 20 when as per the Department, the same is appropriately classifiable under Chapter Heading 2106 chargeable to IGST @18%.

Thereafter, during adjudication, the Commissioner of Customs confirmed the demand of differential IGST on the assessee under Sections 114A and 114AA of the Customs Act, 1962, apart from ordering confiscation of the impugned goods along with imposition of redemption fine thereon.

The assessee has challenged the order passed by the Commissioner of Customs (Appeals) before the Tribunal.

The assessee submitted that the impugned goods are manufactured by blending lemon juice concentrate with water to such extent that the water content is not more than what is there in natural lemon juice; thereafter, it is subjected to the process of 'pasteurization' and subsequently, preservative is added and which is then filled, plugged, capped, labelled and box packed for final sales.

CTH 2106 covers preparations for lemonades which are primarily flavoured syrups and may contain fruit juices as additional ingredients. Hence, the primary composition of products classifiable under CTH 2106 is not necessarily fruit juices, observed the bench.

The Tribunal observed that only those preparations which are used to make lemonade or other beverages, where the concentrated fruit juice is added with citric acid (to take its acidic content more than that of natural juice), essential oils of fruit, synthetic sweetening agents etc. would be classifiable under tariff heading 2106, unlike the instant case, where no citric acid or essential oils or synthetic sweetening agents, etc. are added.

The bench opined that Lemoneez are rightly classifiable under Tariff Item No. 2009 31 00 being the juice of a single citrus pulp as claimed by the assessee.

In view of the above, the Tribunal allowed the appeal.

Case Title: M/s. Dabur India Limited v. Commissioner of Customs

Case Number: Customs Appeal No. 75364 of 2025

Counsel for Appellant/ Assessee: Rahul Tangri and Smt. Ekta Jhunjhunwala

Counsel for Respondent/ Department: Subrata Debnath

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