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TMI Blog1984 (8) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... er, a copy of which shall be placed on each appeal file. 3. The issue is whether the product Palmolein imported by the appellants is an unprocessed vegetable non-essential oil (VNE oil) eligible for exemption from additional (countervailing) duty of customs on the footing that indigenously produced unprocessed V.N.E. oil is exempt from the central excise duty leviable thereon under Item 12 of the Central Excise Tariff Schedule (CET) by virtue of Notification No. 33/63-CE, dated 1-3-1963. The further question is whether or not the goods are palm oil within the meaning of Notification No. 150/64, dated 19-9-1964 which exempts palm oils from excise duty. 4. When the goods were imported and cleared through the Customs, the authorities c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, stands exempted from levy of additional duty. (b) Since RBD palmolein is not manufactured in India, it has to be examined whether if it is manufactured in India, it would attract levy of excise duty. Palmolein being a derivate of palm oil and nothing but processed palm oil would be exempt from excise duty under Notification No. 150/64 and, therefore, on import, exempt from additional duty of Customs. The process of conversion of palm oil into palmolein does not amount to manufacture . Admittedly, RBD palmolein is processed palm oil, the essential character and use of palm oil remaining the same despite the conversion. The conversion, therefore, does not amount to manufacture for excise purposes. (c) If palmolein is distinct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alm oil and palmolein are two distinct and different products. In this connection, he relied upon certain passages occurring in the book Fats and Oils: Chemistry and Technology edited by R.J Hamilton and A. Bhati (Applied Science Publishers, London). Refined palm oil is a product of refining of crude palm oil whereas palmolein is the product of fractionation of palm oil. That the two are different products is borne out by the fact that the I.S.I. Standards were different for them IS : 8323-1977 for palm oil and IS 8361-1977 for palmolein; (d) Government s order-in-review in the case of Godrej Soaps Ltd. Ors. reported in 1981 ELT 72 brought out the distinction in detail and decided that palmolein was not eligible for exemption from a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if it were to be considered as a sort of palm oil. The case will, therefore, need be considered with reference to notification 150/64. 9. The book Fats and Oils: Chemistry and Technology relied upon by the Departmental Representative describes the characteristics and uses of palm oil and palmolein. The book at page 237 has this to say; What is meant by the fractionation of palm oil? The major triglycerides or fat molecules in palm oil are oleodipalmitin, with a melting temperature of 35OC, and a palmitodiolein of melting temperature 19OC. At room temperatures, the group of palmitodiolein triglycerides will normally melt, while the former remain solid, separating the palm oil into both liquid and solid fractions. The chilled palm oi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame conclusion which we have arrived at. We also note that the same conclusion was arrived at by this Tribunal in its Order No. 232/83-C relied upon by the Departmental Representative. 10. The other grounds taken up in the memorandum of revision applications/appeals were not urged before us by the learned Counsel. We shall, however, briefly refer to them. It is contended that since the process of conversion of palm oil into palmolein does not amount to manufacture , the latter is not liable to excise duty under item 12-CET. This contention is misconceived for it has no application whatsoever to the levy of additional duty of customs on imported goods, though it may be relevant to determine the excisability of indigenous goods in given c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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