TMI Blog1998 (7) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... 2.00 as cultures of Micro organism (attracting nil rate of duty) to CET sub-heading 3507.00 (attracting 15% rate of duty) as Enzymes . 2. The classification claimed by the applicant s has been changed on the basis inter alia of the opinion dated 16-3-1995 and 4-12-1996 of the Chief Chemist, Central Revenues Control Laboratory, Technical Material in the form of an Article written by S/Shri J.G. Shewale and H. Shivraman Penicillin acylases Enzymes production and its application in the manufacture of Six APA and the fact that another assessee viz. Max India Ltd. was manufacturing the same item and classifying it under CET sub-heading 3507 and the fact that other companies specially Ranbaxy Laboratory and Morepan Laboratories were import ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibiotics who both once again stated that PGA is an immobilised whole cell catalyst and does not fall under the category of immobilised enzymes. The applicants have also referred to the HSN Explanatory notes to Heading 3507 which sets out that enzymes are organic substances produced by living cells, while PGA manufactured by them has been opined by the Chief Chemist, in the report dated 4-12-1996, to consist of immobilised or dead intact, single cell organism. 4. The applicants further submit that the adjudicating authority has factually erred in his conclusion in para 28 of the impugned order that Max India is manufacturing PGA bio-catalysts classifying it under CET sub-heading 3507.00 as the said company has certified on 15-4-1998 that e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Shri Lakhinder Singh, learned JCDR refers to the Chief Chemist s report dated 4-12-1996 which clearly states that PGA is an enzyme and therefore, PGA Bio catalyst manufactured by the applicants is a crude enzymatic preparation. He also referred to the HSN Explanatory Notes at page 499 to support his argument that the product in question is a prepared enzyme not elsewhere specified or included , and to the HSN Explanatory Notes at page 501 to show that cultures of Micro-organisms of Heading 30.02 are excluded from 3507. He draws our attention to paragraphs 12 to 27 of the impugned order which contain detailed findings on the classification, with reference to the rival entries in the Central Excise Tariff, the Chief Chemist s report, HSN E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cants vide their letter dated 27-1-1993 intimated that PGA is not an edible preparation and is widely used in the manufacture of drug intermediates and subsequently for manufacture of anti-biotics. The Department then revised the proposed for classification of PGAB as yeast and was of the view that classification would be under CET sub-heading 35.07 which covered at the material time, Enzymes, prepared enzymes not elsewhere specified or included would be attracted. It is only after the issue of show cause notices dated 11-2-1995, 20-2-1995 and 24-2-1995 that the opinion of the Chief Chemist was obtained, which indicated CET sub-heading 29.41 was not applicable to the product. The above facts clearly go to show that the classification of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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