1986 (12) TMI 256 - AT - Central Excise

Summary

Issues: Classification of Sal olein and Sal stearine for Central Excise duty

Analysis:
The appeal before the Appellate Tribunal CEGAT, New Delhi centered around the classification of Sal olein and Sal stearine for the purpose of Central Excise duty. The main question was whether these products should be classified under Tariff item 12 as claimed by the appellants or under Tariff Item 68 as assessed by the Revenue.

During the hearing, it was noted that the impugned order disposed of two appeals against two orders-in-original, indicating that the appellants should have filed two separate appeals instead of one. The appellants agreed to file a supplementary appeal to comply with this practice. The Registry was directed to place the supplementary appeal before the Bench for disposal along the same lines as the present appeal.

The Collector (Appeals) had rejected the appellant's claim for classification under Tariff item 12, stating that the products were distinct and different from Sal oil in terms of melting point and iodine value. The appellants had an alternative claim under Notification No. 115/75-C.E., which was dependent on goods falling under Tariff item 68.

The appellants argued that Sal olein and Sal stearine are products derived from fractionation of parent Sal oil and are comparable to Palm olein and palm stearine. They contended that these products, not fit for human consumption, should be classified under Tariff item 12 based on relevant legal precedents and decisions.

The Tribunal considered various decisions, including a Government of India decision, a Five Member Bench decision of the Tribunal, and a Bombay High Court decision, which supported the classification of similar products under Tariff item 12. The Departmental Representative for the respondent acknowledged the applicability of these decisions, despite Revenue's appeals to the Supreme Court.

Referring to the Five Member Bench Tribunal decision and the Bombay High Court decision, the Tribunal concluded that Sal olein and Sal stearine should be classified under Tariff item 12 VN Oil all sorts and not under Tariff item 68. The appeal was allowed in favor of the appellants, granting them consequential relief. Additionally, it was noted that the appellants were entitled to rebate on Central Excise duty paid for the exported products.