Central Excise - Classification/excisability of blended oil obtained by mixing of raw groundnut oil and refined cotton seed oil - Clarification regarding - Central Excise - 52/90

Central Excise - Classification/excisability of blended oil obtained by mixing of raw groundnut oil and refined cotton seed oil - Clarification regarding Circular No. 52/90 Dated 4-9-1990 [From F. No. 90/2/90-CX.3] Government of India Central Board of Excise Customs New Delhi Subject : Central Excise - Classification/excisability of blended oil obtained by mixing of raw groundnut oil and refined cotton seed oil - Clarification regarding. Certain doubts have been expressed regarding classification and excisability of blended oil obtained by mixing raw ground nut oil and refined cotton seed oil in the ratio of 20% and 80% respectively, which is to be marketed by Hindustan Vegetable Oil Corporation, a Government of India undertaking. 2. The matter has been examined by the Board. Separately, raw ground nut oil is classifiable under sub-heading No. 1503.02 of the Schedule to the said Act, which also attract a nil rate of duty. 3. The classification of products which are mixtures, composite goods consisting of different materials or made up of different components, among others, is determined by the application of Rule 3(b) of Rules for the Interpretation of the Schedule to the Central Excise Tariff Act, 1985. As per the said Rule 3(b), mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets shall be classified as if they consisted of the material or components which gives them their essential character. In this particular case, without chemical examination it can not be known as to which oil referred to above, gives essential character to the said mixtures of oils. But it could be given by either one. Hence, the said mixture of oils would merit classification either under Heading No. 15.02 or under sub-heading No. 1503.90 of the schedule to the Central Excise Tariff Act, 1985, depending upon the oil which gives the essential character to the said mixture of oils. 4. Be that as it may, in both the cases, whether the classification is under Heading No. 15.02 or sub-heading No. 1503.90 of the Schedule to the CETA, 1985, the rate of duty would be nil, provided the blended oil has not been hardened for human consumption because if the said mixute of oils has, either by hydrogenation or by any other process, been hardened for human consumption, it would merit classification under Heading No. 15.04 of CETA and will have to discharge appropriate duty liability under Notification No. 115/86-C.E., dated 1-8-1986. 5. The above clarification may be brought to the notice of the lower field formations and the trade interests may also be suitably advised.