TaxTMI 
TaxTMI 
2013 (11) TMI 779
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....roduct should not be classified under Chapter 35 as modified starch. The adjudicating authority, after considering the submissions made by before him and also after granting personal hearing to the respondent, dropped the proceedings initiated by said show cause notice. Aggrieved by such an order, Revenue is in appeal before us. 3. Ld. Departmental Representative reiterates the grounds of appeal. It is his submission that the issue involved in this case is as to classification of the product manufactured by the respondent is mis-classified by them as use of requirement of certain chemicals like Potassium Permanganate, Sulphur, Borax, Sodium Metabisulphate, Soda Ash etc. just give the required effect on the starch power to produce modified starch. It is his submission that these chemicals should give bleaching, sterilization and brightening effect, which would obviously differentiate between native starch and modified starch. It is his submission there is nothing on record to show that use of only higher quantities of such chemicals would result into change and manufacture of modified starch. It is also his submission that there is difference between modified starch and the nativ....
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....rmane for deciding the classification did not undergo any changes). These entries read as follows : Heading No. Sub-Heading No. Description of goods Rate of duty (1) (2) (3) (4) 11.03 1103.00 Starches CSH 35.05 under which Sub-Heading 3505.20 held to be the relevant entry by the Commissioner reads as follows : Heading Sub Description of goods Rate of No. Heading duty No. (1) (2) (3) (4) 35.05 Dextrins and other modified starches (for example, pregelatinised or esterified starches); glues based on starches, or on dextrins or other modified starches. 3505.10 Esterified starches 3505.20 Dextrins and other modified starches 3505.90 Other There is no dispute that the content of starch and ash in the impugned goods is in excess of 45% and less than 2% by weight on dry basis respectively, prescribed for classifying the impugned goods as starches of Chapter Heading 11.03 as stipulated under Note 2 to Chapter 11. There is no dispute that the impugn....
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.....20 in the Tariff reads as follows : 35.05 DEXTRINS AND OTHER MODIFIED STRACHES (FOR EXAMPLE., PREGELATINISED OR ESTERIFIED STARCHES); GLUES BASED ON STARCHES, OR ON DEXTRINS OR OTHER MODIFIED STARCHES. 3505.10 Dextrins and other modified starches 3505.20 Glues This heading covers: (A) Dextrins and other modified starches, i.e., products obtained by the transformation of starches through the action of heat, chemicals (e.g., acids, alkalis) or diastase, and starch modified, e.g., by oxidation, esterification or etherification. (1) Dextrins, obtained either by the degradation of starch by hydrolysis with acids or enzymes, the resulting product being termed maltodextrin. However, products of this kind are classified here as dextrins only if their reducing sugar content, expressed as dextrose on the dry substance, does not exceed 10%; or by roasting starch, with or without small quantities of chemical reagents. If no reagents are used, the resulting product is known as roasted starch. Dextrins are white, yellowish or brown powders, depending on manufacturing process and the kind of starch used. They are soluble in water (suitably heated, if neces....
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....t 11.58% Max 13.00% 2 Ash content 0.07% Max 0.25% 3 PH 5.35 Min 4.50 4 Free Acidity 21.30 ml Max 40.0 ml 5 Cold Water Soluble 0.21% Max 0.40% 6 Petroleum Hydro Carbon Extractable Matters 0.25% Max 0.25% 7 Viscosity at 750C (2% Solution) 35 Secs Min 30 Secs 8 Starch Content 99.72% Min 98.00% In the opinion furnished by the Ahmedabad Textile Industry Association, Ahmedabad, the following opinion is given on the properties of modified starch distinguishing it from MSP. Commercially an item is considered as modified starch only if the parameters such as matching with the IS specifications for modified starches. The use depends on the type and extent of modification. Most of the starch derivatives (modified starches) can be distinguished by physical and chemical methods and with instrumental analytical techniques. The Reader in Food Technology, University of Bombay had this to say on native and modified starches. Native and modified starches do have different physical and chemical properties. They can be distinguished either a....