Tariff classification of Corn Gluten Meal as food-industry residue upheld over peptones classification.

Corn Gluten Meal was held classifiable under Heading 23.01 as residue and waste from the food industry, not under Heading 35.04 as peptones or other protein substances. The product arose as a residual material in maize starch manufacture after separation of fibre, starch and gluten, and its trade use as cattle and poultry feed supported Chapter 23 classification. Mere protein content was insufficient to shift it to Heading 35.04, since there was no evidence of hydrolysis or enzymatic treatment associated with peptones. The Revenue failed to show that the product was not residue or waste of the food industry, so classification under Heading 23.01 was upheld.

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Issues: Whether Corn Gluten Meal is classifiable under Heading 23.01 of the Central Excise Tariff as residue and waste from the food industries, or under Heading 35.04 as peptones or other protein substances.

Analysis: The product emerged from the maize starch manufacturing process as a residual material after separation of fibre, starch and gluten. The lower authorities had found that it was known in trade as gluten meal and was used as cattle feed and poultry feed. The product was not shown to be obtained by hydrolysis or enzymation of proteins, which is the process associated with peptones under Heading 35.04. Mere presence of protein content did not dislodge it from Chapter 23, and the Revenue did not produce material to show that it was not residue or waste of the food industry.

Conclusion: Corn Gluten Meal was correctly classified under Heading 23.01 and not under Heading 35.04, in favour of the assessee.

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