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TMI Blog2011 (1) TMI 732X X X X Extracts X X X X X X X X Extracts X X X X ..... 7-2002, wherein the adjudicating authority had confirmed the classification of the product "New Maltodex" under sub-heading No. 1702.29 and disallowed the exemption claimed under Notification No. 67/95 dated 16-3-95 as amended. 2. The issue in this case pertains to the classification of the product new maltodex manufactured by the respondent viz., Raptakos Brett & Co. Ltd., (assessee in short) i.e. whether it should be classified under Heading No. 1702 as preparation of other sugars or under Heading No. 1901 as food preparation of starch. The product contains malto dextrins, vegetable oil, vitamins, minerals, etc. and has a DE% (reducing sugar content) in the range of 17% to 27% and free starch is absent. The process of manufacture of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in tobacco fermentation and in pharmacy". Since the process of manufacture is more or less the same in the case of new maltodex, the department contends that the product is classifiable under heading No. 1702.29 as preparation of other sugar. 4. Further, the department also relies on the ratio of the judgment in the case of CCE, Chandigarh v. Sukhjit Starch & Chemicals Ltd., 1994 (72) E.L.T. 753 (Tribunal), wherein the classification of malto dextrose was examined. In that case it was decided that malto dextrose conforming to ISI specification No. 873-1974 with a reducing sugar content at 28.5% was classifiable under Heading No. 1702.29 as 'preparation of other sugars'. 5. On the other hand, the respondent, M/s. Raptakos Brett & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g. It is essentially composed of starch with dextrin, vitamins and minerals. In view of the above, the product described as new maltodex may be considered as food preparation based on starch." 7. The lower appellate authority has examined the matter at length and considered the chemical examiner's report and also the decision in the case of the CCE, Chandigarh v. Sukhjit Starch & Chemicals Ltd., 1994 (72) E.L.T. 753 (Tribunal). Since the product under consideration is a preparation of starch and Sukhjit Starch & Chemicals Ltd., case (supra) did not consider classification under Chapter 19 at all and the product in that case was a preparation of sugars with no addition of vitamins and minerals, etc., he held that the ratio of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f manufacture is maize starch or tapioca starch, which is solubilized with the addition of acid/enzyme. Thereafter vitamins and minerals are added to obtain the end product. The chemical examiner's report clearly shows that the product cannot be considered as maltose dextrin falling under heading No. 17.02 and since the heading No. 1901 covers food preparations of flour, meal, starch or malt extract, the product new maltodex product is classifiable as food preparation based on starch. 10. It is further observed that the department's classification is not based on any expert opinion on the product. In the case of products where the chemical composition is an important and relevant factor in determining the classification, it is very im ..... X X X X Extracts X X X X X X X X Extracts X X X X
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