2007 (3) TMI 9 - AT - Central Excise

Classification As per the prior decision of tribunal Makai Poha were classifiable under heading 19.04 of CETA After reconsidering the details the Division Bench classify the said product under heading 11.01of CETA

Summary

Issues involved:
Classification of goods known as "makai poha" under Heading 19.04 of the Schedule to the Tariff Act.

Analysis:
The matter was referred to the Larger Bench for reconsideration of a previous decision where it was held that "makai poha" falls under Heading 19.04. The Division Bench disagreed, stating that Heading 19.04 covers prepared food ready for consumption, while "poha" in question was not ready for consumption food as it was merely corn flattened between rollers. The appellants argued that Heading 19.04 applies to prepared food obtained by swelling and roasting cereals, emphasizing that "poha" did not undergo the required roasting process like "corn flakes." The Department's Authorized Representative contended that the maize grains were cooked for a significant period, making the product a cooked preparation ready for consumption, even if further processing was needed. The Division Bench disregarded expert reports indicating differences in chewiness between "makai poha" and corn flakes. After demonstrations, it was evident that "makai poha" could not be consumed as a prepared food.

Regarding the classification, Chapter 11 deals with milling products, and Chapter 19 covers prepared foods obtained by swelling or roasting cereals under Heading 19.04. The HSN Explanatory Notes clarify that corn flakes and similar products fall under Chapter 19, while unprepared milling products of cereals are covered under Chapter 11. The Explanatory Notes highlight the distinction between prepared foods ready for consumption and unprepared milling products. The Tribunal concluded that "makai poha" did not go beyond being semi-heated and rolled, placing it under Heading 11.01 instead of Heading 19.04. The decision in Favourite Food Products was overruled, and the product was classified accordingly under Heading 11.01.

In light of the analysis, the Tribunal ruled that "makai poha" should be classified under Heading 11.01 instead of Heading 19.04. The appeals were to be placed before a regular Division Bench for final orders on any other arising issues.