As per the prevalent law and classification Apex court has held that, " the expression Rice and Spice" fall under Sub-Heading 11.01 and not under 21.08 of the Tariff Act.

Since we are holding that the activity undertaken by the assessee does not amount to manufacture, this appeal is liable to succeed on this ground itself in as much in the absence of any manufacture there is no question of payment of any excise duty. We may, however, remark that even otherwise the classification of the product by the Revenue under sub-heading 21.08 may not be correct. In fact, the CEGAT has accepted that classification only on the ground that the product after mixing of raw rice with dehydrated vegetable and spice, has become a new product as it amounts to `manufacture' and on that basis it has held that it no longer remains product of milling industry. As we have held that it does not amount to `manufacture' as the essential characteristics of the product, still remains the same, namely, rice, a natural corollary would be that it continues to be the product of the milling industry and would be classifiable under sub-heading 11.01.

M/s. Satnam Overseas Ltd. Versus Commnr. of Central Excise, New Delhi - 2015 (4) TMI 356 - SUPREME COURT