TMI Blog2005 (2) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... ugned order. 1.2 This 'guar dal flour' is obtained by the following process - "The appellants purchase split guar dal. Water is added to purchase 'split guar dal' so as to soften it and pulverize the same, in a pulverizer for fine mesh. Then that is sieved and dried in centrifuged dryer. The flour so obtained is mixed and packed and ready for sale." 1.3 The Commissioner in the impugned order classified 'guar dal flour' under sub-heading No. 1301.10 of the Central Excise Tariff Act, 1985 demanded duties with interest and imposed penalty. Hence this appeal. 2.1 After hearing both sides and considering the material it is found - (a) The appellants are manufacturing Tamarind, Kernel Powder and Guar Dal Flour. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by Note 1 to Chapter 11 of CETA, 1985 General Note No. 3 of HSN which stipulates, what are to be covered and concluded under that Chapter it reads as - "(3) Products obtained by submitting new materials of other chapters (dried leguminous vegetables, potatoes fruit etc.) to process similar to these indicated in paragraph (1) or (2) above. " Para (1) (2) provide for milling, sewing other process and the reading of the notes induces us to consider the process in this case conducted on leguminous Guar Dal to be covered as milling industry products covered under Chapter 11 of CETA, 1985. (iv) Once classification is arrived at as covered under Chapter 11, the appropriate sub-heading would be 1101.00. (c) Proceeding to examine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 'other mucilages and thickness, whether or not modified derived from vegetable products' of Heading 1302 of HSN are not included by the entry 1301 in CETA 1985. The coverage of 1301 if CETA is clipped. This snipping would induce a finding that entities falling under 1302.32 of HSN. i.e. Mucilage and thickness whether or not modified derived from locust beans, locust bean seeds' or guar seeds would be excluded from Heading 1301 of Chapter 13 of CETA 1985. Thus 'Guar Dal Flour' whether milled or further worked to be stabilised will not fall under Heading 1301 of CETA 1985. (ii) The gums are classified in Encyclopedia of Chemical Technology Kirk Othmer-4th Edition as algal, botanical and microbial. Botanical gums arc chiefly classified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtificial gums. Tariff Heading No. 13.10 does not cover seed gum. It would cover gum which is/are in the nature of plant exudates/extracts - Significance of the word "other" as appearing in expression "other vegetable saps and extracts" cannot be ignored while reading the Tariff entry. The coverage of the goods under Heading No. 13.01 would be of "Lac; gums, resins and other vegetable saps and extracts". The term "gums" as appearing in the aforesaid expression should be in the nature of plant exudates/extracts since the other term like "resins, vegetables saps and extracts" as appearing in the expression, description of the goods under Heading No. 13.10 are of plant saps/extracts. This submission of the Ld. Advocate is fully supported b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tever that the word "perfumery" in the said Entry 16 draws colour from the words "cosmetics" and "toilet goods" therein and that, so read, the word "perfumery" in the said Entry 16 can only refer to such articles of perfumery as are used, as cosmetics and toilet goods are, upon the person. The word "perfumery" in the context in which it is used has, therefore, no application to "dhoop" and "aggarbatti......." Thus, by application of principles of Noscitur a Sociis the Supreme Court held that the term "perfume'" as appearing in the company of the words 'cosmetics and toilet goods' would not cover "dhoop" and "aggarbatti". Applying the said principle laid down in the aforesaid decision to the present case, it is found that the term "gums" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for the period beyond one year prior to the date of issue of show cause notice. For the purpose of raising the above demand proviso to Section 11A(1) of the said Act had been invoked to sustain the same. In para 12 of the show cause notice, it was alleged that the appellants had contravened the provisions of Central Excise Rules. However, in this paragraph no allegation is found what and whether these contraventions were with intent evade payment of duty. In para 13 of the show cause notice it was alleged that the appellants had manufactured the goods in question, with the aid of power and this act of contravention on the part of the appellants was alleged to be committed by recourse to suppression of facts with an intent to evade payment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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