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TMI Blog2020 (2) TMI 810X X X X Extracts X X X X X X X X Extracts X X X X ..... MSP Regular (Pharma), MSP Regular (Textiles) and MSP Regular (Food) manufactured and cleared by the appellant during the period from December 2007 to May 2008 under Tariff heading No.35051090 of the Central Excise Tariff, 1985 and confirmed the duty demand amounting to Rs. 1,10,96,148/- and also imposed penalty of Rs. 10 lakhs under Rule 25 of the Central Excise Rules, 2002. 2. Briefly the facts of the present case are that the appellant are engaged in the manufacture and clearance of Maize Starch Powder (MSP for short) and other excisable products like Liquid Glucose, Dextrose Manohydrate, Malto Dextrine, Hydrol, Maize Germ, Corn Steep Liquid, Maize Gluten. Out of these products, the different varieties of Maize Starch Powder are classi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and packed and supplied to poultry and cattle feed industries. In the primary Merco Centrifuge remaining starch slurry still contains some percentage of Gluten. This again is processed in Hydro Cyclone Wash System to remove the remaining Gluten. The resultant product so obtained is called as Starch Slurry. MSP Regular: The MSP-Regular is manufactured by way of centrifuging the aforesaid Starch Slurry to remove water and drying it to get powder and packed in 50 kg bags. MST-Thin Boiled Starch (TBS) The manufacturing process upto the production of 'Starch Slurry' is same as detailed above at para 2.1. For manufacture of MSP-Thin Boiled Starch, 15 M3 of starch slurry is mixed with 120 litres of Hydrochloric Acid and retained for 60 min ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Industry 2.4. As per the opinion of the Chemical Examiner, Customs House, Chennai furnished vide letters F.No.L.CX.II/S/732/2001)LAB No.71/75/2001) dated 27.06.2001 and 30.04.2002, it appeared that MSP Regular Starch Manufactured and cleared by the assessee which is not processed/modified alone is classifiable under Chapter Sub- Heading No.11081200 of the first schedule to the Central Excise Tariff Act, 1985 and the remaining products viz., MSP (Thin Boiled Starch), MSP (Very Thin Boiled Starch), MSP (Pharma) and MSP (Food) are modified starches. 2.5. Chapter heading 3505 of Central Excise Tariff Act, 1985 reads as under: "Dextrines and other modified starches (for example, pregelatinised or esterfied starches): glues based on starch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. Vs. CCE, Belgaum [2015(323) ELT 184 (Tri. Bang.)] iii. Riddhi Siddhi gluco Biols Ltd. Vs. CCE, Belgaum [2016 (335) ELT 761 (Tri. Del.)] 4.2. She further submitted that for the earlier period and the subsequent period, the issue has been settled in favour of the appellant in the appellant's own case which is reported in 2011(27) ELT 291 (Tri. Bang.). 5. On the other hand, the learned AR submitted that the Tribunal's decision in the appellant's own case have been challenged by the Department before the Apex Court and the appeals are pending; but there is no stay in those appeals. 6. After considering the submissions by both the sides and perusal of the material on record, we find that the issue is squarely covered by a precedent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... classification of the products in dispute under CH 3505 as modified starch. We note that the Commissioner held "that it is not necessary to allow any cross-examination of the so-called experts and authorities of the numerous institutions being 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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