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TMI Blog1983 (4) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... follows : The petitioner firm carries on business in the manufacture of cashew kernels at Quilon and has got branch offices in Bangalore and a few other places. It entered into a new venture of exporting tapioca chips to foreign countries in order to help the poor agriculturists of Kerala. The firm also earned valuable foreign exchange for India thereby. The contract of sale and export was with Messrs. Gramania B.V. Rotterdam, through their brokers in India for the export of 5000 tonnes of tapioca chips in the first instance. The size of the tapioca chips to be exported was of the range of 1.5% (large size). The firm submitted the necessary papers for clearance with the Customs authorities. Clearance was granted on 2-2-1978. Accordingly, a quantity of 5000 tonnes of tapioca chips was exported on board the vessel 'M.V. Evia' from the port of Mangalore. The Customs authorities did not assess the goods to any export duty, and, therefore, the goods were cleared for export without any duty. 4. In accordance with the terms of the contract, the buyer had the option to demand for 5% more or less of the contracted quantity, and in this case, the buyer wanted a further quantity of 5%. Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7, dated 18-5-1978, and, therefore, as animal feed, it was liable to export duty. Against this order, an appeal was preferred to the Appellate Collector of Customs, Madras. That appeal was rejected on 31-8-1979. A revision to the Government of India was also rejected by order dated 2-6-1981 upholding the levy. It is at this stage, this writ petition has been preferred for certiorari to quash these orders. 7. The contention of Mr. G. Ramaswami, the learned Counsel for the petitioner, is that there is absolutely no justification for holding that the tapioca chips exported would fall under the definition of "animal feed" in Item 21 of the second schedule to the Customs Tariff Act, 1975. It is not uncommon that tapioca chips are taken by human beings. Relying upon very any materials produced before me, it is urged that it is human feed. More than this, on 4-4-1977, the Collectorate of Customs and Central Excise, Cochin, had made it very clear to one of the exporters M/s. Pierce Leslie India Ltd., Cochin-3, that no duty was payable on export of tapioca chips, but leviable to cess at 1/2% ad valorem. This undoubtedly would constitute a representation or holding out to the trade, and, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 1962) and in supersession of the notification of the Government of India in the Department of Revenue and Banking (Revenue Wing) No. 401-Customs, dated 2nd August, 1976, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts animal feed, falling under Heading No. 21, of the second schedule of the Customs Tariff Act, 1975 (51 of 1975) and annexed when exported out of India, from the whole of the duty of customs leviable thereon under the said second schedule. 1. Animal feed of any of the following descriptions : (a) Cotton seed cakes, whether decorticated or not; (b) Cotton seed extractions, whether decorticated or not. (c) Lin-seed cakes. (d) Lin-seed extractions. (e) Guar meal. 2. Mixed or compounded animal feed, containing one or more of the ingredients mentioned at Sl. No. 1 above, whether or not such animal feed contains any other oil-cakes or substances provided the protein content of such animal feed is not more than 40 per cent." 11. At this stage itself, I may say that where the Assistant Collector of Customs went wrong is that the exemption under the last of the notifications, viz., Notification No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dried : from such dried slices manioc or cassava meal, used for cassava cakes, etc., is prepared by rasping. The starch also is separated and used for food under the name of Brazilian arrowroot; and this, when agglomerated into pellets on hot plates, forms the tapioca (q.v.) of commerce." 14. It is stated in "Tropical Crops" by J.L. Pursglone (1974 Edition) at page 172 as follows : "Starch is prepared by granting or grinding washed peeled tubers and washing out the starch by squeezing in repeated changes of water. Tapioca is made by gently heating washed and clean starch on hot iron plates which partly cooks it and causes agglutination into small round pellets. Cassava flour is made by grinding the sun-dried slices or chips. In north-eastern South America a coarse meal, farinha, is prepared by grating washed peeled tubers and squeezing the mass in long, sleeve-like baskets, tipiti, which expresses the juices; the compressed pulp is then toasted over a low fire. The latex and extracted juice may be concentrated by boiling to produce cassureep which is used in sauces and is a constituent of West Indian pepperpot. In west Africa, garri a meal like farinha, is made, but the pulp i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t keep well for long, they are cut into slices and dried. Dried slices can be stored for several months. They are cooked and eaten or powdered into flour and used in the same manner as rice flour. In Philippines, tubers are grated, juice squeezed out and the residue made into pellets; under the name Cassava Rice, dried pellets are used as a substitute for rice and maize. The most important commercial use for cassava is the production of starch and sago; they are produced both on cottage and industrial scale in many cassava-producing countries, including India (van Royen I. 99 : Rep. Tapioca Enquiry Comm., Travancore-Cochin, 1952, 33-37 : Rep. Marketing Tapioca 1955, 27-28; Holleman Aten. 15; Burkill, II, 1417-19)." 19. Therefore, it is not correct on the part of the Customs authorities to classify tapioca as animal feed. Merely because animals take it, it cannot be considered as animal feed. Nor again, as I have observed earlier, the failure under the Notification to specifically include tapioca chips in the exempted category would enable the Customs authorities to contend that it would fall under the definition "animal feed". I am unable to accept the argument of the learned C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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