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TMI Blog2013 (11) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... er 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 native starch and actual user of the product manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 impugned goods conform to the description of Chapter Heading 11.03. However, as per the impugned order, these goods possess distinguishing attributes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 necessary) but not in alcohol. (2) Soluble starch (amylogen) : an intermediate product obtained in the transformation of starches into dextrins. prepared by boiling starch in wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 at the structural level by scanning electron microscopy (SEM), or from the physicochemical properties (as exemplified from the Brabender amylograms). Central Pulp and Paper Research Institute clarified in response to a reference by Riddhi Siddhi that unmodified and modified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... referred to by the assessee. We hold that it was necessary and appropriate that the Commissioner examined experts himself before deciding the classification based on the opinion of the Chemical Examiner. Though the results of tests conducted by the Chemical Examiner could be preferred over results of such tests conducted by private agencies, personal opinion of the Chemical Examiner without studying the process of manufacture followed or carrying out chemical test as prescribed cannot form safe and reliable basis for deciding classification. In the circumstances, we find that the Commissioner's conclusions are not substantiated with evidence or proper reasoning. In these circumstances, we set aside the impugned orders and allow these appeals. 7. It is to be noted that the decision of the Tribunal in the case of Anil Products Ltd was also cited before the Bench, who decided the issue in the case of Riddhi Siddhi Gluco Biols Ltd, and as reproduced above, the said decision has been properly addressed and departed. 8. In our view, the decision in the case of Riddhi Siddhi Gluco Biols Ltd (supra) being later decision, will prevail over the decision of Tribunal in the case of Anil Pro ..... 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