TMI Blog1983 (11) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... ne 1977 a contract for the supply of tapioca chips for industrial use was entered into between the appellants and the foreign buyer in West Germany through the State Trading Corporation of India (STC). In August/ September, 1977, 9 consignments of tapioca chips were exported from Cochin under 9 separate shipping bills but by the same vessel. At the time of export samples were drawn from each of the 9 consignments and tested by the customs laboratory at Cochin and they were all reported as not conforming to the Indian Standard Specification for tapioca meant for livestock feed. The goods were declared in each of the 9 shipping bills as `tapioca chips (for industrial use) , and all these shipping bills were passed without levy of export duty. Subsequently, a show cause notice dated 9-7-1977/3-10-1977 was issued to the appellants to show cause why export duty should not be levied on the above consignments. The appellants duly showed cause. In his order dated 17-12-1980, the Assistant Collector confirmed the demand. As already stated, their appeal to the Collector of Customs (Appeals) was also rejected by the order of the latter dated 9-12-1981. [It has been stated by the appellants, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that the particular tapioca chips exported by them could not be considered as animal feed. 5. Shri Arora cited authorities to show that tapioca chips are not used only as animal feed but have well-established alternative uses. One of these was Webster s New International Dictionary, Volume III, Page 2339, wherein one of the meanings of tapioca has been given as follows :- A preparation of cassava starch processed into granular, flake, pellet, or flour form and used as a food in bread or as a thickening agent in liquid foods, as puddings, soups, or juices, or industrially as a size or adhesive. Shri Arora further quoted page 2130 of the same Dictionary to show that the word Size refers to any of various glutinous materials used for various industrial purposes. He also quoted from the publication The Wealth of India wherein the uses of tapioca chips and tapioca waste has been given (page 292 et seq.). He pointed out that according to this work tapioca chips and tapioca flour are in demand for production of glues and adhesives, while tapioca waste is used in food for cattle and pigs and as raw materials for the production of adhesives. 6. Shri Arora also referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and this can also be inferred from the fact that all the 9 shipping bills were passed without payment of export duty. (We have considered it necessary to mention this in some detail because a copy of the test report which was furnished to us by Shri Chandramouli, and which was taken to pertain to one of these consignments, actually seems to pertain to an export made earlier by another exporter and by a different vessel). 9. Shri Arora referred to the letter dated 12-8-1977 addressed to the exporters by the State Trading Corporation of India, in which it has been stated as under :- This is to confirm that the importer in West Germany for the above-mentioned quantity of Tapioca Chips has confirmed that the Tapioca Chips being purchased under the referred contract, are for use as industrial products and not as cattle-feed . Shri Arora stressed that the exports were being made through the S.T.C. on the basis of a back-to-back agreement, and that the statement obtained by the S.T.C. from the foreign buyer could be relied upon as authoritative, and as proving beyond doubt that the tapioca chips under consideration were intended for use as industrial products. 10. Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CCCN, and different varieties of these preparations have been described. Shri Chandramouli also referred to the McGraw Hill Encyclopaedia of Science and Technology, Volume I, page 457, where reference has been made to the composition of various animal feeds. 12. In conclusion, Shri Chandramouli stated that he placed reliance on the Tribunal s previous order in the case of M/s Ramnath Co. and that, following that order, the present appeal should be rejected. 13. We have carefully considered the arguments advanced by both sides, with particular reference to the reasons that guided our decision in the case of M/s Ramnath Co. We find considerable weight in the arguments advanced by Shri Arora, both with reference to this case by itself and to distinguish it from the case of M/s Ramnath Co. The salient features of the present case can be summarised as follows :- (a) Standard publications such as Webster s Dictionary, Wealth of India and Indian Standard Specifications have been cited to show that tapioca chips have established uses other than as animal feed; (b) Test reports carried out by Customs House laboratories have been cited to show that these very consignmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he maximum laid down in the ISI specifications for Tapioca as Livestock Feed. There is also a categorical statement by the Customs laboratory that the goods did not conform to those specifications. Again, in the case of M/s Ramnath Co., the appellants had referred to other alternative uses for tapioca, but did not submit any authorities to show that these were established uses. In contrast, in the present case authorities to this effect have been submitted. Again, whereas in the previous case there was no evidence as to the purpose for which the goods were to be used, in the present case a specific certificate to that effect has been furnished. 15. Summing up the case for the appellants, the position is as follows :- (a) Item 21 of the Export Tariff Schedule covers Animal feed , and in order to be dutiable under that item it has to be considered whether the particular goods conformed to the specifications or requirements generally recognized for tapioca for use as animal feed; (b) The Custom House test reports clearly showed that the goods did not conform to the Indian Standard Specifications for tapioca for use as animal feed; (c) The fact that there are alternat ..... 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