‘Saffron’ capable of use as Food Flavour and Colour: CESTAT quashes Confiscation and Duty Demand on alleged Misused

The Central Excise and Service Tax Appellate Tribunal (CESTAT) ruled that saffron can be used both as a food flavor and color, overturning confiscation and duty demands due to alleged misuse. The case highlighted the ambiguity over saffron's classification, emphasizing its dual utility. The tribunal's decision underscores the importance of precise classification under Excise and Customs laws to avoid undue duties and penalties. This ruling clarifies the permissible uses of saffron under tax regulations, impacting businesses involved in its import and use.