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TMI Blog2017 (9) TMI 408X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 dated 23/10/2009 passed by Commissioner of Central Excise, Meerut-II and therefore they are taken together for decision. 2. Brief facts of the case are that the appellants were engaged in the manufacture of the Paper based decorative laminates, Formaldehyde, Post form particle Board etc. It was noticed by Revenue during audit that appellants were also engaged in the manufacture of a product called by appellants as Potato flakes and the same were being cleared without payment of Central Excise duty. Therefore, Assistant Commissioner of Central Excise, Division Hapur, was informed about the same by the officers who were conducting the audit. The Range Superintendent through the letter dated 05/08/2005 requested the appellants to submit the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e show cause notice dated 3rd August, 2009 the appellant submitted the process of manufacture which includes use of a conveyor to carry the prepared Potatoes to a slicer where they are sliced, the slice potatoes are pumped into a blancher where steam is used to get the starch to gelatinise within the potato cells which were then subjected to cold water thereafter the received product is lifted into a cooker where steam is used, where the potatoes are separated with the desired degree of aggregation with minimum cell rupture and then such processes product was subjected to milling which is also known as flaking which results into the production of Potato Flake . The appellant submitted to the original authority in reply to show cause notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to be classified under headings 2001, 2004 and 2005. They further contended that the show cause notice has claimed that the appellants were manufacturing Aloo Mash and stated that they have indicated on their product that product will be useful for making Aloo Mash and contended that the product manufactured by them was Potato Flakes and was rightly classifiable under 11052000 which is a specific entry in the Tariff which reads as flour, meal, powder, flakes, granules and pellets of potato under Tariff Item No. 1105 which are further divided into flour, meal and powder under Tariff Item No. 11051000 and flakes granules and pellets under Tariff Item No. 11052000. The said show cause notice was adjudicated through impugned Order-in-Original ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rence between nil rate and rate of duty applicable as per classification under Tariff Item No. 20052000 was Rs. 51,33,790/- for the period under dispute. The said impugned Order-in-Original has confirmed the demand and imposed equal penalty. The original authority ordered the appellant to pay interest on the confirmed demand. Further original authority has imposed a penalty of Rs. 3 lacks on Shri Yogendra Verma, Deputy Manager. Aggrieved by the said order both M/s. Century Laminating Co. Ltd. and Yogendra Verma are before this Tribunal. 3. Heard Learned Counsel Shri M. Chandrasekharan senior advocate with Shri S. Sunil advocate on behalf of both the appellants. The Learned Counsel has taken us through the chapter notes of Chapter 11 and ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Shorter Oxford English dictionary (Third Edition) and it is defined as something reduced to a soft pulp by beating or crushing, by steeping in water. He has submitted that the process of manufacture stated at said Para-28 of Order-in-Original does not mention that potatoes are subjected to any process to reduce it to a soft pulp by beating and crushing. He has further submitted that Chapter note 1 (a) Chapter 20 states that Chapter 20 does not cover vegetables, fruits, nuts prepared or preserved by the processes specified in Chapter 7, 8 or 11 and that Chapter note 3 of Chapter 20 states that headings 2001, 2005 and 2004, cover only those products of Chapter 7 or heading 1105 or 1106 which have been prepared or preserved by processes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chapter 20052000. 5. Considered the rival contentions and perused the record alongwith chapter note of Chapter 11 and Chapter 20. On going through the submissions made by Revenue it came to be established that Interim Order No. 6-7/2016 dated 04/07/2016 was complied by Revenue. Through the said Interim Order Revenue was directed to produce copies of (a) Panchanama through which samples for chemical examinations was drawn (b) Test Memorandum & (c) Chemical examiners report. Through letter dated 22/07/2016 Revenue submitted copies of Six Test memoranda & chemical examiners Reports forwarded by Deputy Commissioner of Central Excise, Hapur through his letter dated 22/07/2016. The Test memoranda & chemical examiners reports so submitted did not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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