TaxTMI 
TaxTMI 
TaxTMI 
2023 (4) TMI 1033
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....China and submitted the Bill of Entry No. 8968312 dated 20.04.2015. The Bill of Entry was examined on 25.04.2015 by the Officers of Customs (Prev.) New Delhi. The goods in the containers were found to be as per the packing list and the description of goods was given as:- "Tapioca Papad (Production Date November, 2014) (Expiry date November, 2016) (ingredients: Tapioca Starch, Salt, Sugar permitted food colours) of Assorted colours. 3. During examination of the consignment, it was observed that the product imported is described by the importer on boxes as 'China Papad'. The product was found uniform circle appearing one inch diameter light chips. They are made of 82% Tapioca Starch, 8.5% Water, 4.7% Salt and 4.8% Sugar. The product can be consumed only after frying the same in oil. It was noticed that appellant had classified their goods under CTH 19059040 whereas the goods were classifiable under Chapter 19030000 attracting 30% BCD, 6%, CVD, 2% Edn. Cess, 1% SHE and 4% SAD. The goods under import were detained under Section 110 of the Customs Act, 1962. 4. The goods being food items, provisional release of the seized goods was granted by the competent authority on 12.05.2015.....
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....s. This heading covers edible products prepared from manioc starch (tapioca), sago starch (sago), potato starch (farinoca, potato tapioca, potato sago) or form similar starches (arrow-root, salep, yucca, etc.) The starch is mixed with water to form a thick paste, which is put into a strainer or perforated pan from which it falls in drops on to a metallic plate heated to a temperature of 120 °C to 150 °C. The drops form small pellets or flakes which are sometimes crushed or granulated. In another method, the starch paste is agglomerated in a steam heated vessel. The products are marketed in the form of flakes, grains, pearls, siftings, seeds or similar forms. They are used for the preparation of soups, puddings or dietetic foods. 19.05-Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products. 1905.10 - Crispbread 1905.20 Gingerbread and the like - Sweet biscuits, waffles and wafers: 1905.31 Sweet biscuits 1905.32 -Waffles and wafers 1905:40-Rusks, toasted bread and similar toasted products ....
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....arious types of biscuits including: (a) Plain biscuits containing little or no sweetening matter but a relatively high proportion of fat; this type includes cream crackers and water biscuits. (b) Sweet biscuits, which are fine bakers' wares with long-keeping qualities and a base of flour, sugar or other sweetening matter and fat (these ingredients constituting at least 50% of the product by weight), whether or not containing added salt, almonds, hazelnuts, flavouring, chocolate, coffee, etc. The water content of the finished product must be 12% or less by weight and the maximum fat content 35% by weight (fillings and coatings are not to be taken into consideration in determining these contents). Commercial biscuits are not usually filled, but they may sometimes contain a solid or other filling (sugar, vegetable fat, chocolate, etc.). They are almost always industrially manufactured products. (c) Savoury and salted biscuits, which usually have a low sucrose content. (9) Waffles and wafers, which are light fine bakers' wares baked between patterned metal plates. This category also includes thin waffle products, which may be rolled, waffles consisting of a tasty....
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....dried flour or starch paste. It is used for coating certain confectionery articles, particularly nougat. It should not be confused with the so-called "rice paper" made by slicing the pith of certain palms (see Explanatory Note to heading 14.04). 8.1 Learned Counsel for the appellant while submitting that the product 'Papad' (Tapioca) merits classification under CTH 1905 90 40 and not under CTH 1903 00 00, set out the difference between the manufacturing process required under the two Entries. He referred to the manufacturing process given by the Department in the show cause notice with respect to the goods covered under Entry 1903:- "the starch is mixed with water to form a thick paste which is put into strainer or perforated pan from which it falls in drops on a metallic plate heated to a temperature of 120 degree Celsius to 150 degree Celsius. The drops from small pellets or flakes which are sometimes crushed or granulated. In another method, the starch paste is agglomerated in a steam heated vessel. The products are marketed in the form of flakes, grains, pearls, siftings, seeds or similar forms. They are used for the preparation of soups, puddings or diteic foods." 9. On ....
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....ading 1903 as it described the goods as 'Tapioca and substitutes therefor prepared from starch, in the form of flakes, grains, pearls, siftings or in similar forms whereas HSN 1905 describes the goods as bread, pastry, cakes etc. According to his submissions, Tapioca is not specially mentioned in CTH 1905 whereas the same is specifically mentioned in CTH 1903 as Tapioca and substitute for that. He relied on Rule 3(a) of the General Rules of Interpretation. 12. Before adverting to the applicability of the chapter heading 1903 it is necessary to know the term 'Tapioca'. The Encyclopedia Britannica described 'tapioca' as : "Tapioca a preparation of cassava root starch used as a food, in bread or as a thickening agent in liquid foods, notably puddings but also soups and juicy pies. In processing, heat ruptures the starch grains, converting them to small irregular masses that are further baked into flake tapioca. A pellet form, known as pearl tapioca, is made by forcing the moist starch through sieves. Granulated tapioca, marketed in various-sized grains and sometimes called "manioca", is produced by grinding flake tapioca. When cooked, tapioca swells into pale, trans....
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....We now come to CTH 1905 which covers bakers' wares and the common ingredients of such wares have been specified in the Chapter Notes is cereal flours, leaves and salt but they may also contain other ingredients such as gluten, starch, flour of leguminous vegetables, malt extract or milk, seeds such as poppy, caraway or anise, sugar, honey, eggs, fats, cheese, fruit, coco in any proportion, meat, fish, bakery improvers. The other characteristics of the food items covered under this heading as can be noticed from the Chapter Notes is that the ingredients are mixed in a form of dough for making these products. Similar is the case for making of the Papad, i.e. ingredients like flour, starch, lentils, potatoes etc. are mixed with other ingredients like salt, spices, sugar etc. in the form of dough. Since the ingredients are common and the process of manufacturing is similar that the legislature has consciously put Papad under a separate subheading of CTH 1905. The submission of the learned authorised representative for the revenue that the Papad under this heading has to be considered in the traditional sense of being made only from 'Urad Dal' whereas the product in question....
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....dana' and is available in the market in granulated form by the name of Sabudana. If a common man asks for Sabudana (Tapioca) he will not be given Papad (Tapioca) or vice-a-versa. So the basic test to determine the classification is how the product is known in the market. After referring to series of judgements, i.e Ramavatar Budhaiprasad Vs. Asstt. Sales Tax Officer (1962) 1SCR 279 and Commissioner of Sales Tax, MP, Indore Vs. M/s Jaswant Singh Charan Singh AIR 1967 SC 1454, on the principle that while interpreting items in the taxing statues resort should be not to the scientific or technical meaning of such terms but to their popular meaning, attached to them in their commercial sense, the Apex Court in Dunlop India Ltd & Madras Rubber Factory Ltd Vs Union of India 1983 13 ELT 1566 has observed: "31. It is well established that in interpreting the meaning of words in a taxing statute, the acceptation of a particular word by the Trade and its popular meaning should commend itself to the authority. xxx xxx xxx xxx 36. We are, however, unable to accept the submission. It is clear that meanings given to articles in a fiscal statute must be as people in trade and comm....
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....ourt has referred to the aforesaid judgment in Connaught Plaza Restaurant and decided the classification of 'Anardana' on the principle that words in a taxing statue must be construed in consonance with their commonly accepted meaning in the trade and their popular meaning. 22. The authorised representative for the revenue has relied on Rule 3(a) of General Rules of Interpretation to say that heading which provides most specific description shall be preferred to heading providing a more general description. There is no doubt about the provisions of Rule 3(a), however the applicability of the same needs to be examined in the facts of the present case. Section 2 of the Central Excise Tariff Act,1985 provides the rates at which duties of Excise shall be levied under the Central Excise Act 1944 are specified in the First Schedule and the Second Schedule. The First Schedule contains a set of Rules known as "General Rules for the Interpretation of this Schedule". Rule 1 of these Rules makes it clear that the titles of Section, Chapter and Sub-Chapters are provided for ease of reference only and that for legal purposes, classification shall be determined according to the terms of....