Potato flakes classification upheld over aloo mash where processing showed flaking, not mashing, under the tariff entry.

Potato products that underwent slicing, blanching, cooking and milling were held to be classifiable as potato flakes under Tariff Item 11052000, because the process supported flaking rather than conversion into mash or soft pulp. Chapter Notes 1(a) and 3 of Chapter 20 did not exclude the goods, as the record did not establish that the finished product was reduced to aloo mash in the factory, and the chemical examination material did not test the goods on that footing. The demand, penalty and interest were set aside, with consequential relief.

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Issues: Whether the goods manufactured by the appellants were classifiable under Tariff Item No. 11052000 as potato flakes or under Tariff Item No. 20052000 as aloo mash.

Analysis: The dispute turned on the proper application of Chapter Notes 1(a) and 3 of Chapter 20 of the Central Excise Tariff Act, 1985, read with the relevant tariff entries. The goods were shown to have undergone slicing, blanching, cooking and milling, the process being described as flaking. The record did not establish that the goods were reduced to a mash or soft pulp in the factory. The material sent for chemical examination also did not show testing of the finished goods in the manner assumed by the adjudicating authority. Since the subject product was specifically covered by the entry for potato flakes and the manufacturing process supported flaking rather than mashing, the exclusion under Chapter 20 was not attracted.

Conclusion: The goods were correctly classifiable under Tariff Item No. 11052000 and not under Tariff Item No. 20052000. The demand, penalty and interest were liable to be set aside, and the appeal succeeded with consequential relief.

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