Tariff classification of gram flour and maize flour mix upheld under Chapter 11, with exemption maintained despite unit container packing.

Pacudamix, a mixture of gram flour and maize flour, was treated as a product of the milling industry under Chapter 11 rather than a Chapter 21 preparation. The classification adopted by the adjudicating authority was upheld because the product lacked the ingredients associated with the Chapter 21 goods relied upon in the show cause notice. Packing in unit containers did not change the tariff position, and the Chapter 11 exemption was held to apply. The classification and exemption were therefore sustained in favour of the assessee.

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Issues: Whether the product marketed as Pacudamix, consisting of gramflour and maize flour, was classifiable under Chapter 21 and liable to duty, or fell under Chapter 11 as a product of the milling industry and was exempt.

Analysis: The product was found to be only a mixture of gramflour and maize flour, without the ingredients associated with the Chapter 21 goods relied upon in the show cause notice. The classification adopted by the adjudicating authority as a product of the milling industry was found to be justified. The objection based on packing in unit containers did not alter the correct tariff classification, and the goods were held to be covered by the relevant exemption for Chapter 11 goods.

Conclusion: The product was not classifiable under Chapter 21 and was correctly treated as falling under Chapter 11. The classification and exemption were upheld in favour of the assessee.

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