Full Judgment
A show cause notice was issued alleging that these products were dutiable under Chapter Heading 2107.91 and demanding duty for the back period amounting to Rs. 32,32,599/-. Before the Collector, a plea was made that these products were not classifiable under Chapter 21 but would fall under Chapter 11 as products of the milling industry and would attract duty at nil rate. The Adjudicating Collector after examining the product accepted the contention and dropped the proceedings. The Revenue have come up in appeal against this order.
2. We have heard Shri Satnam Singh, SDR for the Revenue and Shri G.Shiva Dass, Advocate for the Respondents.
3. In deciding the issue before him, the Collector sampled the contested goods as well as other products admittedly falling under Chapter 21 and decided against the classification alleged in the show cause notice. He observed that the necessary ingredients like salt and chilly powder were not present in the impugned goods. He observed that the goods were simply mixture of gramflour and maize flour. It was his finding that the mixture did not amount to manufacture and that the product although so advertised as Pacudamix was commonly known only as Besan in the retail market. We find that this logic of his has not been challenged in the Appeal Memorandum. The appeal memo concentrates only on the fact that the goods were packed in pre-determined quantities which amounted to being put up in unit containers. On perusal of the Collector's order, we find that his belief that the goods should be described as product of milling industry was well founded. We also find that although it was not so alleged in the show cause notice, the correct classification would be under Chapter 11 where even the goods packed in unit containers were exempted from duty by virtue of an exemption notification. We find no infirmity in the Collector's order, we uphold the same and dismiss this appeal.