9911796707
TMI Blog1985 (9) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... iefly stated, are that the appellants imported from Malaysia a consignment of coconut oil. The goods were described as white coconut oil, unrefined in the bill of entry filed for their clearance. They were allowed to be cleared for home consumption, without payment of additional duty of customs, on execution of a bond bending chemical test. On 23-9-1978, the Assistant Collector of Customs, Madras wrote to the appellants informing them that the goods were found on test to be refined coconut oil and hence liable to additional duty of customs of Rs. 15,000/-. The appellants contested the demand which, however, was confirmed by the Assistant Collector by his order dated 28-4-1979. The appeal against this order was dismissed by the Appellate C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mported oil, and the suppliers certificate that the imported oil was not refined. As against all these the only evidence produced by the department is the chemical Examiner s report which gave the acid value as less than 0.5 (which is often found in raw unrefined coconut oil too) and, for the rest, was an expression of opinion that the oil could be considered as processed. Shri Mehta cited the Gujarat High Court decision in Steadfast Paper Mills v. Collector of Central Excise, Baroda and Ors. [1983 E.L.T. 744 (Guj.) = 1983 E.C.R. 717D] to the effect that it was not in the Chemical Examiner s province to give opinion on tariff classification. On the merits of the classification, he relied on the Tribunal s decision in Collector of Customs, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut oil, unrefined, with the following specifications - F.F.A. (free fatty acids) -1% maximum. M and I (Moisture and Impurities) 0.5% maximum. Iodine value 10 max. Colour in Lovibond Scale 51 cell R. Max. A certificate of weight and quality issued by Caleb Brett (Malaysia) describes the goods as White Coconut Oil. The certificate of analysis dated 21-9-1977 by Edtech Associates, SDN Berhad, Malaysia, gives the F.F.A. (expressed as Lauric Acid) as 0.08%, M and I as 0.12%, Iodine value as 8.8 and colour (Red units only in 5 " Cell Lovibond Scale) as 1.0. The suppliers invoice describes the goods as white coconut oil unrefined,-as also the bill of lading. It appears that, after import, the goods were sampled by the Madras Port Health O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nating from the suppliers and the overseas analysts describe the goods as white coconut oil, unrefined. The manufacturer says the goods were manufactured mechanically by the expeller extraction process, though it does not say whether the goods were, subsequent to extraction, processed or not. 10. As against these pieces of evidence, the only evidence from the department s side is the Chemical Examiner s report from which the following emerge :- (i) It is not possible to find out by Chemical tests whether the oil has undergone bleaching (The Chemist suggests that the significance of the description of the oil as white oil may be ascertained before considering it as processed or otherwise). (ii) The acid value was found to be 0.33 (The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hemist concludes by saying that in the absence of reliable evidence to show that the oil in question should have resulted only from processing of lower grade oils, the imported goods may be considered as unprocessed. 13. As is well-known, coconut oil is consumed for edible purposes inter alia for its flavour. It is not, therefore, always that coconut oil is deodorized before consumption. The certificate of M/s. Manilal Holdings, Penang, is to the effect that the parcels of white coconut oil have been obtained, by mechanically pressed process only and does not contain solvent extracted or chemically processed oil . The purchase contract shows that the commodity is described as coconut oil white (raw unrefined edible). M/s. Manilal Holdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since they test the oil not from the point of view of the Central Excise Notification but from the health hazards point of view. If the Customs authorities had some doubt about the prima facie evidence put up by the importers they should have been suitably challenged after giving due opportunity to the appellants. In the absence of any such challenge and in the absence of any evidence to show that the oil was processed within the meaning of Central Excise Notification, and in the context of the Deputy Chief Chemist s opinion, we consider it proper that the benefit should go to the respondents and that the exemption from additional (countervailing) duty of customs should be extended to the concerned respondents." 12. The situation in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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