TaxTMI 
TaxTMI 
2011 (2) TMI 436
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....LMOND, GRAN BAR BANANA, etc. depending on the flavouring ingredient used in the product. All these were classified under SH 1905 90 90 by the appellant (importer), but the Revenue wanted to classify the items under SH 1905 31 00 of the First Schedule to the Customs Tariff Act. This dispute resulted in an order of the Assistant Commissioner of Customs (Imports) classifying the goods under SH 1905 31 00 and holding the same chargeable to duties of customs accordingly. The adjudicating authority was of the view that the goods imported by the appellant could be appropriately considered as "Sweet Biscuits", defined under HSN Explanatory Notes to Heading 1905. Accordingly, it decided the classification of the item. In an appeal filed by the asses....
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....acked product, is not based on flour of the cereal (oats) and that it is based on whole grain oats rolled, with other ingredients like sugar, fat, etc. added, and ultimately cast in the form of bars in the process of baking. The learned counsel submits that this aspect was not considered by the lower authorities. He has also referred to the expression "fine" used to qualify "bakers' wares" in the above Explanatory Notes to HSN heading 1905. It is submitted that the bars with a base of whole grain oats cannot be said to be "fine" bakers' wares. Flour of oats should have been used to make the product "fine bakers' ware". In this connection, he has also invited our attention to the literal meaning of the word "flour" in the Chambers Dictionary....
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....urther says that most types of sweet biscuits call for a low protein flour with an extensible gluten. It also says that, in the UK, these flours are obtained almost entirely from British wheats. Therefore, according to the gleamed counsel, the item imported by the appellant is not 'biscuits', let alone 'sweet biscuits' be classified under SH 1905 31 00. 4. The learned SDR, apart from reiterating the findings of the original authority, submits that the burden was on the assessee to establish that flour of oats rather than full grains thereof, was used as base for the product. His apprehension is that, during the course of processing of oats, at least a part of the grains might have been converted into fine powder (flour) and, therefo....
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....he product label shown to us also indicates the ingredients in the same manner. We have also examined the sample produced by the counsel. Whole grain oats are physically visible on these samples. Apparently, this item was not manufactured with a base of flour of oats. It appears to have been manufactured with a base of whole grain oats plus other ingredients. Therefore, the goods under classification cannot be considered as "fine" bakers' ware. In other words, it is not 'sweet biscuits'. The literature produced by the counsel today also indicates that biscuits are manufactured by using flour rather than whole grain cereals. Thus, the appellant has been able to establish a good case for classification of the item under SH 1905 90 90, the ult....