Lakshmikumaran & Sridharan Attorneys Secures Victory for Mondelez India Foods Pvt. Ltd. before the Supreme Court
The leading law firm in India, Lakshmikumaran & Sridharan Attorneys, successfully represented Mondelez India Foods Pvt. Ltd. before the Hon’ble Supreme Court in a tariff classification dispute concerning wafer biscuits, including Perk, ULTA Perk, Perk Poppers, RMC, and Wafer Uncoated Reject.
“Mondelez India Foods Pvt. Ltd. v. Union of India – Supreme Court Appeal – Pronounced on 03.11.2025”
The central issue before the Hon’ble Supreme Court was whether commercial wafer biscuits manufactured and sold by Mondelez India Foods Pvt. Ltd. were classifiable under CTH 1905 32 90 (“other wafers”), eligible for concessional duty under Notification No. 3/2006-CE and successor notifications, or under CTH 1905 32 11 (“wafers coated with or containing chocolate”), which attracts full rate of duty and is excluded from exemption.
Department’s Claim vs. Client’s Submission
The Department contended that the products were chocolate-coated or chocolate-filled wafers and therefore fell under the specific entry of CTH 1905 32 11, arguing that this entry is a sub-classification of “waffles and wafers.”
In contrast, Mr. V. Lakshmikumaran, appearing for Mondelez, submitted that the four-dash tariff entry for “chocolate-coated or chocolate-filled wafers” is a sub-classification of the three-dash entry for “communion wafers”, in accordance with the General Explanatory Notes. He further clarified that communion wafers are thin, unleavened discs used in religious ceremonies, whereas Mondelez’s products are commercial wafer biscuits intended for general consumption, and therefore cannot be classified under an entry meant for communion wafers.
Supreme Court Decision
The Hon’ble Supreme Court, on hearing both sides, dismissed the Department’s appeal, thereby affirming the following findings of the Tribunal:
- Tariff Structure and Classification: The Tribunal held that, in accordance with the General Explanatory Notes, the four-dash entry for “chocolate-coated or chocolate-filled wafers” is a sub-classification of the immediately preceding three-dash entry for “communion wafers,” and not of “waffles and wafers,” thereby rejecting the Department’s interpretation.
- Product Composition and Standards: The Tribunal further noted that Mondelez’s products contain vegetable fat and therefore do not qualify as “chocolate” under FSSAI and PFA standards. Accordingly, they cannot be classified as “chocolate-coated” wafers, in any case.
- Prior Classification Acceptance: The Tribunal observed that the Department had previously accepted classification of similar products under CTH 1905 32 90 in the case of Little Star Foods Pvt. Ltd. v. Principal Commissioner, 2020 (371) E.L.T. A246 (S.C.) and held that a contrary stand was impermissible.
- Eligibility for Exemption: It was held that the exemption under Notification No. 3/2006-CE applies to wafer biscuits under CTH 1905 32 90, regardless of whether they contain or are coated with chocolate.
Significance
The affirmation of the Tribunal’s decision by the Supreme Court provides important clarity on tariff interpretation, particularly the relevance of dash hierarchy, product nature, and market understanding in classification disputes involving food products.
The Lakshmikumaran & Sridharan Attorneys represented Mondelez India Foods Pvt. Ltd. through Mr. V. Lakshmikumaran, Ms. Medha Sinha, Mr. Dhruv Tiwari, and Ms. Mehak Mehra.
Click to know more about Lakshmikumaran & Sridharan Attorneys
If you have a news or deal publication or would like to collaborate on content, columns, or article publications, connect with the Legal Era News Network Team and email us at [email protected] or call us on +91 8879634922.