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TMI Blog2008 (9) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... e declared price. 2. The detailed test reports in respect of one of the samples received from the Central Excise Customs Laboratory, Vadodara indicated as under : Sl. No. B/E No. date T.M.No. dated Query Raised Details of Test Result 1. 1613 dated 16-10-2006 311 dated 28-10-2006 (i) Whether the sample confirms the description MIXED FATTY ACID OIL falling under CTH 38121900 (ii) Whether the sample confirm the description Non-edible Industrial Grade Crude Palm/Stearin or any other edible/non-edible oil faling under Chapter 15 including Degrass (Residue of fatty substances) (iii) Please specify nature and chemical composition (i) Chemical Examiner vide letter F. No. RCL/BD/Cus/IMP 935/888 dated 10-1-07/22-1-07 reported as under :- The sample is in the form of light brownish yellow oily liquid. It is having following characteristics. (i) Acid value-2.17 (ii) Iodine value - 49.0 (iii) Peroxide value - 2.8 (iv) SAP value - 206 (v) Kries Test - Negative Note :- The sample under reference is other than acid oil. It is a mixture of vegetable oil. 3. From the above test result and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stoms Laboratory, Vadodara from the remnant of the samples and to ask them specifically by giving separate full description of the main heading of the CTH 15.16, 15.17 and 15.18 of Customs Tariff Act, 1975 and to ask further under which sub-heading the subject goods are classifiable. 5. The Chemical Examiner, Central Excise Customs Laboratory, Vadodara examined the issue afresh and reported his findings vide his letter No. RCL/24/TO/CE-II/06-07 dated 4-5-07, as under : In this context, it is stated that the composition of the samples under reference have been examined from the stand point of the items covered under CTH Nos. mentioned in your above said letter. It is observed that none of the samples shows the presence of the animal fat in it and the samples are other than the Mixed Fatty Acid Oils, degrass and vegetable waxes. The samples B/E No. 1374/06 and 1166/06, are the Mixture of oils of palm origin and samples of B/E No.1275/06, 1375/06 and 1613/06 are the samples of Mixture of Vegetable Oils as communicated earlier. Attention is invited to the sub-heading of Chapter 15 of the HSN viz. 1516 para A (SH 1516 10 00 of CTA), 1517 Para A (SH 1417 10 10 and 1517 90 30 of CT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave also perused the report of the Commissioner of Customs (Import), Customs House, Nhava Sheva and the report of the Commissioner of Customs (Import), Mumbai-I. As per practice of the assessment of the import of inedible mixture of vegetable oil , the same is being assessed under CTH 15180039 of the Customs Tariff and the assessment was made provisionally and PD bond backed by Bank Guarantee of the differential duty between the declared description i.e., inedible mixture of vegetable oil and non-edible grade crude palm oil is taken in respect of allowing concessional rate of duty under Notification No. 17/2001-Cus dated 1-3-01.The goods are assessed on first check basis and the representative sealed samples are forwarded for lab. Test and once they confirmed to be inedible mixture of vegetable oil, they are provisionally cleared as above subject to Industrial user with actual user condition, that the same will be utilized for industrial user and will not be put for reprocessing for making edible grade of vegetable oil. Intimation to this effect of such release has been also forwarded to jurisdictional Assistant/Dy. Commissioner who in turn issues a certificate that the goods has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... than of Lin Seed Oil and Castor Oil, dehydrated. CTH 1518 0011, 15180019, 15180021, 15180029, 15180031 and 15190039 are meant for single vegetable oil i.e. linseed oil, castor oil, respectively. These sub-headings contain single oil. The entry other vegetable oil and its fats refers to any single oil other than linseed and castor oil because the word used is other vegetable oil and not other vegetable oils and further word used is its fats and not their fats . Thus, this is abundantly clear that the sub-heading 15180031 and 15180039 are meant for single oil or the fats of single oil. Since the imported goods are mixture of inedible vegetable oils, and its fats, means it contains more than one oil and accordingly, the mixture of two or more oil whether of vegetable oil/fats and animal oils/fats will not be classifiable under CTH 15180039. As such, it is contended that the imported product being inedible mixture of vegetable oil are appropriately classifiable under residuary sub-heading 15180040. As per the entry against the said heading in ITC-HS (Policy 2004-09), the goods falling under the said heading are prohibited from import without specific licence from the compet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Judicial), I record a separate order. 12. The Commissioner (Appeals) has reached the conclusion that the goods imported are classifiable under Heading 15180039 of Customs Tariff on the basis of following grounds : (i) The Chemical Examiner had opined that the product cannot be classified under 15180040 as it does not contain animal fat/oil. (ii) As per Explanatory Notes at page 134 of the HSN for a product to be classified under CTH 15180040, it should contain animal oil/fat. (iii) As per reports of the Commissioner (Imports), Customs, Nhava Sheva, and Commissioner (Customs), Mumbai-I, inedible mixture of vegetable oil was being assessed under 15180039 of the Customs Tariff Heading. 13. The Chemical Examiner s opinion has been reproduced by my learned sister. According to the report of the Chemical Examiner, samples examined by him are samples of mixture of vegetable oils in respect of three bills of entry and in respect of two bills of entry, the samples were mixture of oils of palm origin. Thus, there is no dispute that the imported goods are mixture of vegetable oils. The Chemical Examiner also states that to be classified under CTH 15180040, the goods have to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ule 3B of General Rules of Interpretation of Import Tariff, mixture are to be classified under heading which give their essential character and if it is not possible to do so, Rule 3C provides that the goods shall be classified under heading which occurs last in numerical order amongst those which equally merits consideration. Once 15180031 and 15180039 are considered as sub-categories of other vegetable oil and its fats and in view of the fact that the Chemical Examiner vide his F. No. RCL 24 T.O. CE-II/940 dated 22-1-07 has informed that it is not possible to find out the exact percentage of individual vegetable oils in all the samples, Rule 3A and Rule 3B of Rules of Interpretation of the Tariff do not apply. The only appropriate heading applicable on the basis of description of the sub-heading and Rules of Interpretation of Tariff is 15180040. Therefore, the Chemical Examiner s opinion does not seem to be based on the application of principles of classification and the Commissioner (Appeals) has also not discussed this aspect but has simply relied upon the Chemical Examiner s opinion that since the product does not contain animal oil, it cannot be under CTH 15180040. The Chemic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .g., soya-bean oil with limited amounts of maleic anhydride at a temperature of 200 C or more, in conjunction with sufficient polyhydric alcohol to esterify the extra acid groups. Maleic oils so obtained have good drying properties. (b) Drying oils (such as linseed oil) to which have bean added in the cold small quantities of driers (e.g. lead borate, zinc naphthenate, cobalt resinate) to increase their drying properties. These oils are used in the place of boiled oils, in the preparation of varnishes or paints. They are very different from the prepared liquid driers of heading 32.11 (which are concentrated solutions of driers) and must not be confused with those products. (c) Epoxidised oils. obtained by-treating, for example, soya-bean oil with peracetic acid pre-formed or formed in situ by reaction between hydrogen peroxide and acetic acid in the presence of a catalyst. They are used as plasticisers or stabilisers for, e.g., vinyl resins. (d) Brominated oils used as an emulsion or suspension stabiliser for essential oils, for example, in the pharmaceutical industry. (B) Inedible mixtures or preparations of animal or vegetable fats or oils or of fractions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se as there are no Sub-heading in the Explanatory Notes as rightly pointed out by Member (Technical). Even in the Explanatory Notes, mixture of animal or vegetable oil of inedible grade have been dealt with in single heading without making any distinction between mixture of vegetable oils and that of animal oil, separately. I am in agreement with the views expressed by Member (Technical) that as seen from the structure of Tariff Item 1518, a description of sub-heading without numeric code gives a category of goods and descriptions which are preceded by numeric code gives sub-categories. Going by the same analogy, Heading 15180031 has to be understood to cover edible grade of other vegetable oil and its fats. 15180039 has to be understood to cover non-edible grade other vegetable oil and its fats. This would mean that 15180040 would cover whatever oils and their fats which are not covered from 15180011 to 15180039. Since other vegetable oil and its fats and other specific oils are covered under other headings, mixture of vegetable oils has to necessarily come under 15180040. There is no doubt that reference in a heading, the materials or substance shall be taken to include a referen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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