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2020 (2) TMI 810 - AT - Central ExciseClassification of goods - Maize Starch Powder (MSP, for short) (Thin boiled starch), MSP (very thin boiled starch), MSP Regular (Pharma), MSP Regular (Textiles) and MSP Regular (Food) - whether classified under Tariff heading No.35051090 of the Central Excise Tariff, 1985 or under Chapter Sub- Heading No.11081200 of the First Schedule to the Central Excise Tariff Act, 1985? - Benefit of N/N. 3/2007-C.E. dated 01/03/2007 - period from December-2007 to May-2008. HELD THAT - The issue is squarely covered by a precedent decision of the Tribunal in the appellant s own case RIDDHI SIDDHI GLUCO BIOLS LTD. VERSUS COMMR. OF C. EX., BELGAUM 2011 (4) TMI 970 - CESTAT, BANGALORE wherein it was held that the impugned order relying upon the report of the Departmental Chemical Examiner who had given his personal opinion without any empirical tests or study of manufacturing process cannot be sustained. Appeal allowed - decided in favor of appellant.
Issues: Classification of Maize Starch Powder under Central Excise Tariff Act, 1985; Contravention of Rule 4 and Rule 6 of CER, 2002; Applicability of precedent decisions in the appellant's own case.
Classification of Maize Starch Powder: The appeal addressed the classification of Maize Starch Powder (MSP) under the Central Excise Tariff Act, 1985. The Commissioner classified various types of MSP manufactured by the appellant under Tariff heading No.35051090 and imposed duty demand and penalty. The appellant claimed exemption under Notification No.3/2007-C.E. for the period from December 2007 to May 2008. The manufacturing process of different MSP varieties was detailed, including MSP Regular, MSP Thin Boiled Starch, MSP Very Thin Boiled Starch, MSP Regular Pharma, and MSP Regular Food. The Chemical Examiner's opinion differentiated between MSP Regular Starch and modified starches like MSP Thin Boiled Starch, MSP Very Thin Boiled Starch, MSP Pharma, and MSP Food. The Tribunal referenced Chapter heading 3505 of the Tariff Act, covering modified starches obtained through various processes, leading to classification under Chapter subheading 35051090 for processed starches used in industries. Contravention of Rules and Show-Cause Notice: The Department alleged that the appellant contravened Rule 4 and Rule 6 of the Central Excise Rules, 2002. A show-cause notice was issued on 17/12/2008, and the Commissioner confirmed the duty demand after the appellant's detailed reply. The appellant argued that the impugned order did not consider the facts and law properly, citing various Tribunal decisions in their favor, including Riddhi Siddhi gluco Biols Ltd. vs. CCE, Belgaum. The Department highlighted that the Tribunal's decisions were challenged in the Apex Court, with pending appeals and no stay granted. Applicability of Precedent Decisions: The Tribunal examined the appellant's submissions and previous Tribunal decisions, notably the case reported in 2011(270) ELT 291 (Tri. Bang.), where it was held that the Commissioner's reliance on the Departmental Chemical Examiner's opinion without empirical tests or study of the manufacturing process was not sustainable. The Tribunal emphasized the need for critical examination of expert opinions and empirical testing to justify classification decisions. The Tribunal concluded that the impugned order lacked proper reasoning and evidence, setting it aside and allowing the appeal based on the precedent decision in the appellant's own case. The judgment was pronounced on 17/02/2020, providing consequential relief to the appellant based on the established legal principles and precedents.
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