9911796707
TMI Blog2004 (2) TMI 484X X X X Extracts X X X X X X X X Extracts X X X X ..... riff Act, as confirmed by the Commissioner (Appeals) in the impugned Order, or under Heading No. 14.01 as claimed by the appellants. 2.1 Shri D. Sharma, learned Consultant, submitted that the Appellants manufacture poultry feed supplements using corncob produced by subjecting corncobs to process of grinding and sieving; that the residue, in the form of grit, generated during the processing of corncob is further subjected to the process of grinding and sieving and is graded according to size and is packed in bags under the brand name ANPOL; that the said grit being having high oil and water absorption capacity and being tough and free of dust is generally used in tumbling machines, vibro finishing machines, barrel finishing machines as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... processes undertaken by them amount to manufacture. He also mentioned that neither the decision of Supreme Court nor Board's Circular are applicable as facts are completely different. 3. After considering the submissions of both sides, we agree with both the contentions advanced by the learned Departmental Representative. The Appellants cannot make out a completely new case at the stage of second Appeal. Moreover, the entire processes undertaken by them result in bringing into existence two new products - poultry food and polishing material. 4.1 The learned Consultant, further, submitted that the Commissioner (Appeals) has interpreted the Tariff in a manner which is contrary to the Rules of Interpretation; Rule 1 of the Rules f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct would be classifiable under Heading 23.01 of the Central Excise Tariff being the residue and waste from the food industries; that corncob is the waste that is generated in processing of maize (corn) and ANPOL gets generated in the further processing of the corncob; that therefore, ANPOL is also the residue from the food industry and merits classification under Heading 23.01 of the Tariff; that the Directorate General of Foreign Trade has also classified the Corncob grit under Heading 23021002 of ITC (H.S.) EXIM CODE [Policy Circular No. 28 (RE-99), dated 18-8-99]. 5. The learned Advocate also submitted that if ANPOL is classified under Heading 34.05, they are eligible to S.S.I., exemption under Notification No. 1/93-C.E., dated 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gly no penalty under Section 11AC of the Central Excise Act is imposable on them; that no penalty is imposable under Rule 173Q of the Central Excise Rules, 1944. Reliance has been placed on the decision in Padmini Products v. CCE, 1989 (43) E.L.T. 195. 6. Countering the arguments, Shri Virag Gupta, learned Departmental Representative, submitted that the impugned product is not classifiable under Heading 14.01 as the said Heading applies to vegetable material in natural form; that ANPOL is also not covered by Chapter 23 as it is not residue/waste derived from vegetable materials as it is a product manufactured from corncob by adopting manufacturing process and is made for polishing purposes; that ANPOL is a product which is specificall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of Heading No. 34.04. 3405.90 - Other. 8. We observe that as per the process mentioned by the Appellants, they process corncob, which is generated as a waste in the processing of corn. Thus their manufacturing process arises from processing of waste. This itself goes to show that their product cannot be classified under Heading 14.01 which covers vegetable plaiting materials; and vegetable products, not elsewhere specified. The impugned product is neither vegetable plaiting material nor a vegetable product as the process itself starts on corncob which is generated as a waste. HSN Explanatory Notes for Heading 14.04 clearly mentions that "This Heading covers all vegetable products, not specified or included elsewhere in the Nomencl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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