ANIL STARCH PRODUCTS LTD Vs. UNION OF INDIA
HIGH COURT OF DELHI
ANIL STARCH PRODUCTS LTD
UNION OF INDIA
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(1.)In this writ petition, under Article 226 of the Constitution of India, the petitioner has challenged the validity of the order of Government of India holding that 'Wet dextrose' is a product which is classifiable under Tariff Item No. 1E and, therefore, excise duty is payable thereon when the same is manufactured by the petitioner.
(2.)The petitioner, inter alia , manufactures 'Dextrose Monohydrate' and another product called 'Sorbitol'. According to the impugned order, the petitioner manufactured Dextrose by adopting the following process :-
(a) Starch milk is liquified under controlled conditions;
(b) The liquified material is subjected to conversion or saccarification by help of chemicals;
(c) Saccarified liquid is refined for colour removal and other impurities and then subjected to concentration by evaporation process;
(d) Concentrated Liquor is then crystallised;
(e) Crystallised material is then subjected to centrifuge process when dextrose crystals and liquid materials are separated. The dextrose crystal containing about 20% moisture is "Wet Dextrose".
(f) The so-called wet dextrose as stated by the petitioner, is then dried in a flash dryer Dry material containing 7% to 9% moisture is then seived in a sifter to obtain powder, called dextrose monohydrate which is packed in HDPE bags.
(3.)Before the Excise Authorities, the petitioner contended that "Wet dextrose" falls outside the mischief of the Central Excise Tariff and no excise duty is payable when the said product comes into existence. The Assistant Collector, who had issued a show cause notice, did not agree with the submissions made by the petitioner and came to the conclusion that wet dextrose was classifiable under Tariff Entry 1E. The said item reads as under :-
"Item No. 1E Glucose and dextrose Item No : Tariff description Rate of duty 1E Glycose and dextrose and preparations thereof :
(i) Glucose in whatever form, including liquid glucose, dextrose monohydrate and anhydrous dextrose.
(ii) Preparations of glucose and dextrose in which the reducing sugar expressed as anhydrous dextrose amount to more than eighty per cent by weight."
After the passing of the order by the Assistant Collector samples were drawn of wet dextrose for being sent for chemical examination. According to the petitioner it was not informed about the report of the Chemical Examiner.
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