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TMI Blog2013 (9) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... e of duty under serial No. 30(A) of Notification No. 21/2002 - the bond executed by the appellant before the Assistant Commissioner was valid and it cannot be cancelled without any rationale basis. Following Superintendent of Central Excise and Others v. VAC Met Corpn. Pvt. Ltd. [1985 (8) TMI 71 - SUPREME COURT OF INDIA ] - It was evident that crude palm stearin used in the manufacture of soaps/fatty acids and fatty alcohols was eligible for a concessional rate of duty at 10% ad valorem subject to the condition that the importer follows the procedure set out in Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996 - Stearic acid manufactured by the appellant was also a fatty acid even thou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sional rate of customs duty for its use in the manufacture of industrial fatty acids. They had furnished a bond dated 19-12-2006 under the said Rules for an amount of Rs. 6,13,76,239/- being the differential duty involved on 5000 MTs of crude palm stearin to be imported at concessional rate of customs of 10% ad valorem (BCD) + 4% ad valorem (ACD) + 2% Education Cess under Notification No. 21/2002-Cus., dated 1-3-2002. 2.2 During the audit of the records of the assessee, it was noticed that the appellant should have imported crude palm stearin on payment of duty at 20% ad valorem in terms of entry No. 30(C) of the said Notification and not at 10% ad valorem of entry No. 30(A). Therefore, the lower authority cancelled the bond and directed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o carboxylic fatty acids. Stearic acid is also a fatty acid though used for industrial purposes and therefore, they are rightly covered under serial No. 30(A) of the table annexed to Notification No. 21/2002 and eligible for concessional rate of basic customs duty of 10% ad valorem. Serial No. 30(C) applies to goods (except crude palm oil) having free fatty acids 20% or more and falling under various headings specified therein for the manufacture of soaps, industrial fatty acids and fatty alcohols and attracts basic customs duty of 20% ad valorem. Since the item imported is specifically covered under serial No. 30(A), the question of forcing them to avail benefit under 30(C) does not arise and, therefore, Revenue s action in cancelling the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or Heading No. or sub-heading No. Description of Goods Standard rate Additional duty rate Condition No. 30 15 (A) Crude palm stearin having Free Fatty Acid (FFA) 20 percent or more and falling under heading 1511, imported for manufacture of soaps, fatty acids and fatty alcohols by a manufacturer having plant for splitting up of such oils into fatty acids and glycerols 10% - 5 (B) (C) All goods (except crude palm oil), having Free Fatty Acid (FFA) 20 per cent or more, and falling under heading 1507, 1508, 1509, 1510, 1511, 1512, 1513, 1514 or 1515 for the manufacture of soaps, industrial ..... X X X X Extracts X X X X X X X X Extracts X X X X
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