TaxTMI 
TaxTMI 
2017 (10) TMI 919
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..../2006-Cus. Sl.No.23. Original authority vide an order dt. 01.08.2007 held that as the goods Yeast Cell Wall is not affected in the process of Autolysation, the goods do not merit classification as "Autolysed Yeast" under CTH 2106 and hence upheld the declared classification under CTH 2102 and eligible for benefit of Notification No.3/2006-Cus. In Appeal, Commissioner (Appeals) vide the impugned order dt. 29.06.2009 set aside the adjudication order and held that the impugned goods are correctly classifiable under CTH 2106 and not eligible for exemption under Notification No.3/2006. Hence appellants have filed this appeal before this forum. 2. On 09.10.2017, when the matter came up for hearing, on behalf of appellant Ld. Advocate Shri M. Kar....
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....s not claim the impugned product to be a product of hydrolysis, which stands covered under the heading 2106 as per HSN. As such, except for autolysed yeast per se, any other product of the autolysis is not covered under the heading 2106 even as per the HSN. Hence, the impugned order of the Commissioner is not sustainable. (iv) When the admitted position remains that the yeast cell wall is not a preparation to be classified under heading 2106, it is not known as to how the Commissioner (Appeals) have held the same is classifiable under 2106. (v) The lower adjudicating authority has taken into consideration the Chinese export customs declaration to the effect that such yeast cell wall is classifiable under 2102. Similarly, the excise inv....
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....ts, obtained by drying, are generally brewery, distillery or bakers' yeasts which have become insufficiently active for further use in those industries; that they are used for human consumption or for feeding animals; the other types of dried yeasts commonly known as petroproteins or yeast bioproteins are also covered under CTH 2102. 5.3 The dispute has arisen because of the HSN notes to CTH 2106 indicating that Autolysed Yeast and other yeast extracts, products obtained by the hydrolysis of yeast, which cannot provoke fermentation and they have a high protein value, used mainly in the food industry, will find classification under that heading. What is therefore required to be analysed is whether the impugned goods have emerged after p....
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.... such autolysation. 5.6 It is interesting to note that even pursuant to review of the aforesaid order dt. 01.08.2007, in the grounds of appeal, filed by department before Commissioner (Appeals), in para-3 thereat states that "Yeast Cell Wall obtained by means of breaking Yeast Cell and isolated by the way of centrifugation.......". However, the department has not elaborated as to why the said yeast cell wall will then be required to be considered as a 'preparation' classifiable under 2106 and not under CTH 2102. 5.7 We also note that even the Commissioner (Appeals) in page-6 of the impugned order has referred to the definition of "Autolysis" in Stedman's Concise Medical Dictionary wherein the process has been defined as under:....