Chapter Sub-Headings 2001.10 and 1904.10 of the Central Excise

Last updated: 15 December 2010

Court :
SC

Brief :
The material facts are that the respondentassessee, M/s. Pepsi Foods Ltd. is engaged, inter alia, in the manufacture of edibles, marketed under the names of Potato Chips, Baked Cheetos Balls, Monster Munch, etc. These are covered under Chapter Sub-Headings 2001.10 and 1904.10 of the Central Excise Tariff Act, 1985 (Act 5 of 1986). Uptill 12th January, 1998, as much as 96% of these products manufactured by the respondent, were sold to M/s. Frito-Lay India, a ‘related person’, and the balance of 4% were sold to independent wholesale buyers. From 12th January, 1998, the sale pattern between the two was changed, wherein M/s. Pepsi Foods Ltd. started manufacturing the aforesaid products on behalf of M/s. Frito-Lay India.

Citation :
Commnr. of Central Excise, Chandigarh Versus M/s. Pepsi Foods Ltd.