TaxTMI 
TaxTMI 
1998 (6) TMI 382
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....ading 3808.10 of the Central Excise Tariff Act, 1985. 2. Central Excise Officer, visiting on 17-12-1990 drew a sample of the product and sent it to Chemical Examiner of the Department for testing. Test result indicated that it was a definite organic chemical falling under Heading 2915.50 attracting duty @ 15% ad valorem. 3. The officers, therefore, on a surprise visit, seized 2940 kgs. of the said finished goods valued at Rs. 1,25,000/- found lying in the factory premises. On scrutiny of records, it was also found that the said goods involving duty of Rs. 65,47,291.65 were removed without payment of duty during the period March, 1986 to December, 1990 without following proper Central Excise procedures. Hence a show-cause not....
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....ticides (including fungicides and weedicides) for the purpose of Central Excise law is incorrect. The authority, it is urged, should have held that the present product, not being sold in the manner and packing, as required in that Act, cannot to be treated as fungicide. (iv) Insecticides (including fungicides) are used by application of spraying, dusting, sprinkling, casting, impregnating etc. Present product is not used in that manner. It is used as an additive in food products such as baked bread etc. (v) The product is used in baking industry as an additive according to IS-6031-1971 of Indian Standards Specification. 6. It is also urged that the respondents wilfully mis-described th....
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....nticides, fungicides, herbicides, anti-sprouting products and plant-growth regulators etc. were excluded from the purview of Chapter 38 by virtue of Note 1(a)(2) of Chapter 38. It may be mentioned that Heading 38.08 of the Central Excise Tariff is not fully aligned with the same heading of HSN inasmuch as the concept of retail sale, which is crucial in HSN, had been dispensed with in regard to classification of goods under Heading 38.08 of the Central Excise Tariff. Therefore DDT whether in bulk of for retail sale would merit classification under Heading No. 38.08 of the Schedule to the Central Excise Tariff Act, 1985 if the same is meant for use as insecticides-C.B.E. & C. Circular No. 17/79-CX. 3, dated 8-5-1991 - 1991 (54) E.L.T. (T21)."....
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....crobial activity, also have tastes and odors would be noticeable, especially in baked goods. At about this same time others found that propionic acid and propionates are especially effective against Bascillus mesentericus, which causes 'rope' in bread, and also that propionates are useful to retard the molding of cheese." A recent study of Seiler presented quantitative data on equilibrium relative humidity as a controlling factor in mold growth on bread and caked, as well as information on propionates and sorbates as mold inhibitors. He reported that for bread,0.2% of calcium propionate by flour weight extended mold-free up to six days, as compared with four days for untreated leaves. No odor problems were found at this level. In r....
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....hree Judge Bench of this Court has relied upon the function and end use also in determining the classification in Indian Tool Manufacturers v. Assistant Collector of Central Excise, Nasik & Ors. [1994 (74) E.L.T. 12 (S.C.) = 1994 (Supp.) 3 SC.C. 632]." 13. We have carefully considered the pleas advanced from both sides. We observe that the product is used by the respondents as an antifungal agent. Even otherwise, property and function of calcium propionate, is inhibiting mold i.e. prevention of fungus in the bread and other food products and medicine. This is apparent from the substantial material produced by the respondent. When the Revenue says it is used as a food additive, it forgets why it is added in the food. It is obvious th....