1999 (12) TMI 554

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....al and Processed Food Products Export Cess Act, 1985 at the rate of 0.5% Adv. for the period from 1-1-1993 to 31-5-1995. The Order-in-Appeal No. 91/94, dated 20-12-1994 had set aside the Order-in-Original and allowed the present respondents appeal on the ground that mushrooms are different from vegetables and therefore the said CESS which is applicable only to vegetables is not leviable thereon. The Order-in-Original confirmed the demand of Rs. 3,25,521/- raised under show cause notice, dated 11-5-93 on account of such CESS leviable on the ground that Chapter 7 of the Customs Tariff specifically includes edible vegetables in the category of vegetables. 2. Revenue prays for restoration of the Order-in-Original by setting aside the Or....

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....s becomes preserved mushrooms and would rightly fall under the Heading 2003.10, as mushrooms preserved otherwise than by vinegar or acetic acid. He further submits that therefore mushrooms would be classifiable as vegetables and those exported by the respondents would fall under the above classification. (f)      He submits that reference to other statutes for this purpose would be illconceived in view of clear provisions in the said CESS Act that it would be collected as duties of Customs. (g)     Finally, he also submits that even in Trade Parlance, mushrooms are known and consumed as vegetables by vegetarians and are sold as vegetables in all major vegetable shops. 4. Learned Con....

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....assification under Chapter 20 proposed in the notice, he submitted that these mushrooms were not subject to any processes which made preparations out of them and mushrooms remained mushrooms when exported. Therefore, Chapter 20 would not be applicable. (g) Finally, he submitted that these mushrooms are not sold in normal vegetable shops as they are regarded as different from normal vegetables in the trade.           Learned Consultant, therefore, submitted that the Order-in-Appeal impugned be upheld. 5. We have carefully considered these submissions and records of the case and find considerable force in the arguments of ld. DR for the following reasons :- (1)  &nbs....