2005 (4) TMI 404

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..... ing of the case, ld. Counsel produced a flow chart of "Soyabean Processing". We reproduce that flow chart for the purpose of examining the classification dispute.      FLOW CHART OF SOYABEAN PROCESSING HULLS .... X PROTEINS + ........   CATTLE FEED INGREDIENT   Toasting Winding   SOLVENT EXTRACTION   SOYABEANS   CLEANING, GRADING, DRYING TEMPERING, CRACKING FLAKING   FOOD GRADE HEXANE   DEFATTED FLAKES 48-50% PROTEIN   CRUDE OIL   DEGUMMING @ 80°   NEUTRALISATION 85°C   BLEACHING @ 120°   DEODORISATION 250°C @ -750mmhg   REFINED COOKING OIL   CRUDE GLUES   SOAP STOCK   SPENT EARTH & .....

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..... n a press or rotary expeller. It is also pertinent to note that "these residues constitute valuable animal foods". It is on record that "soya gum" in question is used in soap industry and not in animal food manufacturing industry. Similarly, it is also not a 'residue' after extraction of oil. The flow chart shows this item as emerging in the very first stage of processing of crude oil. Thus, it is clear that crude gum does not satisfy the use or stage of emergence mentioned in the explanatory note. Therefore, its classification cannot be under Heading 23.04. Therefore, the Commissioner's finding that the item is classifiable under Heading 23.01 is to be overruled (Heading 23.01 goods also fell under item covered by 23.04 of HSN). 5. N .....

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..... he item "in soap making". As already noted, crude gum emerges in the purification of oils. It is also used in the manufacture of soaps. Thus, both the conditions mentioned in the note are satisfied. In view of this, we are of the opinion that the Revenue's contention relating to classification of this item under Heading 15.07 has to be accepted. 8. What is stated above applies equally to the classification of soya soap. Therefore, the Commissioner's order has to be modified in relation to this item also. 9. In the result, it is held that "soya soap" and "soya gum" are classifiable under Heading 15.07 and not under 23.01. The appeals of the Revenue are allowed after setting aside the impugned order. (Dictated and pronounced in o .....

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