1998 (3) TMI 368 - AT - Central Excise

Summary

Issues:
1. Eligibility of product "Nutran" for exemption under Notification No. 17/70-C.E.
2. Classification of "Nutran" and "Fodder Husk" under Central Excise Tariff.
3. Interpretation of relevant provisions and notifications.

Analysis:
1. The appeals concerned the eligibility of the product "Nutran" for exemption under Notification No. 17/70-C.E. The Collector of Central Excise (Appeals) had determined that "Nutran" did not qualify for exemption as it was based on starch (barley powder). The appellants argued that "Nutran" was predominantly a preparation of barley powder and not flour. The Chemical Examiner described "Nutran" as a food preparation containing various nutrients and based on starch (barley powder).

2. The classification of "Nutran" under the Central Excise Tariff was disputed. The Assistant Collector classified it under sub-heading No. 1901.19, while "Fodder Husk" was classified under sub-heading No. 2301.00. The appellants contended that "Nutran" was not based on flour and should not be dutiable. They also argued that "Fodder Husk" was a waste product and not covered under Chapter 11 of the Tariff.

3. The Tribunal analyzed the composition of barley flour and its use in food products. It was noted that the Notification did not specify the type of flour eligible for exemption. The Tribunal differentiated the products in this case from those previously considered by the Supreme Court. Ultimately, the Tribunal upheld the Collector's decision, finding no grounds to interfere. The appeals were dismissed, affirming the classification and exemption eligibility decisions.

This detailed analysis covers the issues of eligibility for exemption, classification under the Central Excise Tariff, and the interpretation of relevant provisions and notifications in the context of the judgment delivered by the Appellate Tribunal CEGAT, New Delhi.