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TMI Blog1994 (12) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... on No. 234/86-C.E., dated 3-4-1986 in respect of Dried yeast (BPC 73) or pharma yeast. On receipt, a Show Cause Notice was issued to them to show cause as to why their claim for total exemption under Notification No. 234/86-C.E., dated 3-4-1986 to Dried yeast (BPC-73) or pharma yeast falling under sub-heading No. 2102.10 be not rejected for the reasons that the goods falling under Chapter 21 are not brought under the purview of the aforesaid notification and why their classification list be not approved accordingly. The appellants hotly contested the Show Cause Notice. After usual adjudication proceedings the Assistant Collector classified the pharma yeast (BPC-73) under Heading 3003.30 and other yeast under Heading 2102.10. However, the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Drug Control Department dated April 1, 1986 clearly states that Pharmaceutical Yeast manufactured by the appellants is of standard quality and it conforms to the standards laid down in BPC 73. Pharmaceutical Yeast is a medicine for restoring vitamine B deficiency in diseases like Beri Beri, Pellagro, Ariboflavinosia etc. To quote from BPC 73 : Yeast is a source of Vitamin B group and has been used for the prevention and treatment of Vitamin deficiency diseases like Beri Beri, Pellagro, Ariboflavinosia etc. in a dose of 30 mg. daily may be given. This statement (quote) would clearly reveal that Pharmaceutical Yeast is also used for treatment of diseases and, therefore, is correctly classifiable under Heading 30.03 5. In reply, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... salts, in which yeast grows very rapidly. After the conversion of all its molasses sugar, the yeast cells are harvested" with the aid of centrifuges. At the same time, the yeast is washed vigorously with water to remove any remaining molasses. To derive the greatest possible benefit from the vitamins present in the yeast, all the yeast cells must be killed. This is done by roller - drying the yeast at a high temperature. Yeast in the form of inactive dried yeast can make a notable contribution to human and animal nutrition as sources of protein and vitamins of B Complex. Yeast is used widely as a protein and vitamin supplement in human nutrition. The contribution of various B-vitamins is more important than the protein contribution since m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondents, I find that Tariff Heading 21.02 reads as follows Yeasts (active or inactive) other single cell micro-organisms, dead (but not including vaccines of Chapter 30); prepared baking powders . Sub-heading 2102.10 states, put up in unit containers and ordinarily intended for sale; sub-heading 2102.90 is for `other . Yeast both active or inactive are covered under Tariff Heading 21.02 falling under Chapter 21. Active yeasts have been classified under Brewery yeast, Distillery yeast, Baker s yeast, Culture yeast and Seed yeast. These are all squarely covered under Tariff Heading 21.02 as per page 156-157 of Explanatory Notes to Harmonised Commodity Description and Coding System. Coming to inactive yeast, it is stated, Inactive yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chapter Note 2 of Chapter 30 of Central Excise Tariff Act also does not cover appellants product which is unmixed product and not put up in measured doses or in packings for retail sale or for use in hospitals. Therefore, the claim of the respondents that their products squarely fall under 3003, is not correct. For the products manufactured out of their inactive dry yeasts by manufacturers of medicines, the classification under Chapter 30, will be relevant and not for the respondents products which squarely fall, for the reasons stated by me above, under Chapter 21." 10. After giving our serious thoughts to the contentions raised in the present case in the light of the facts and circumstances of the case, we agree with the Collector (Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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