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TMI Blog2013 (10) TMI 590X X X X Extracts X X X X X X X X Extracts X X X X ..... he law that in matter of classification, identification of an entry is the primary step, which is concerned with goods and not with description of goods, since the description would be relevant for the application of particular entry, for a single entry refers to a large number of goods of different types, since it is not possible to encapsulate them completely under the comprehensive titles ((2005)5RC 666) ? 2. Whether the Appellate Tribunal failed to appreciate the law that when entry 80/Part B of the First Schedule being "maize products" would include all the goods predominantly made out of maize unless there being any contrary intention indicated by the legislature as in the case of other goods? " 2. The assessee herein is a registere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of tax is totally uncalled for. The assessee enclosed the treatment under the Central Excise Act as well as the ruling of Advance Ruling Authority of Karnataka State, wherein, the maize products are exempted from the levy of tax and contended that the assessment be set aside. 4. The First Appellate Authority agreed with the assessee's contention by following the decision of the Advance Ruling Authority of Karnataka State in Order No.222/05 dated 31.03.2006 holding that "Senor Pepito contillaa chips" is nothing but "Pappad", hence, eligible for exemption. He pointed out that the laboratory test showed that they are all products of maize. Thus, accepting the case of the assessee, the first Appellate Authority held that the assessment could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ical treatment of bones, the Apex Court held that they are all bone products, entitled to exemption. The Apex Court referred to Webster's Comprehensive Dictionary on the word "product" as "anything produced or obtained as a result of some operation of work", thus, bone products were held to be anything produced or obtained from bones; whether such derivation is by a simple physical process or by a chemical reaction made no difference to the end product. Thus, buttermilk does not cease to be a milk product merely because a chemical process is involved in the transformation. 8. Learned counsel further placed before us the decision of the Allahabad High Court in the case of Commissioner of Sales Tax Vs. Kwality Restaurant reported in (1980)45 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioner placed before us the Wikipedia Dictionary meaning as to various maize products to drive the point that the chips as well as the corn balls are nothing but maize products. 11. The materials placed before this Court merely show that maize is used as a base for making corn muffins, cornbread and breads. Leaving aside the question of relevance of wikipedia dictionary, it is relevant to see how the marketable product is made. It is seen from the narration given in the typed set of papers that the cheese balls and tortilla chips are made with the ground maize powder, to which, cheese flavour and seasoning are added. To be called a product, the item in question must retain the essential nature or substantial identity of that commodit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e products obtained by chemical treatment. Pointing out that gelatine is not produced merely from bones, but also other things, such as skin and tissues of animals, the fact that the other raw materials are used to an extent for manufacture of gelatine or ossein, by itself, would not make gelatine, a product other than a bone product. Referring to Webster's Comprehensive Dictionary, the Apex Court held that derivation from chemical reaction, the end product will nevertheless be treated as the primary product; in the circumstances, without straining the expression used in the Notification, the gelatine and ossein manufactured by the assessee as bone products was entitled to exemption. 13. As far as the present case is concerned, on the proc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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