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TMI Blog1984 (11) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... 5-1981, the Collector held that acid oil was a new product, different from the Vegetable Non-essential Oils, the original raw material, and was classifiable under Item 68 of the C.E.T. 3. The learned counsel for the appellants, M/s. Kusum Products disputed this claim. He said that acid oil was a VNE oil, and cannot be assessed under Item 68. The treatment with sulphuric acid does not produce a new product-the oil which is classed acid oil was already in the oil which was treated to obtain the soap stock from which the acid oil is prepared. 4. The learned counsel for the department refuted this argument by pointing to the adjudication of the Collector, who said that the acid oil was a new and different product and one which can fall on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Foods , 4th Edition by K.A. William). In the present case the sample shows that the free fatty acid present was 49.1%. It is clear that this acid oil which is free fatty acid of some other reacted oil is a recovered product and not a VNE oil. It is also found from Brussels Nomenclature that acid oil (prepared by decomposing with mineral acid the soap-stock obtained during refining of some oil) has been placed in heading 15.10 whereas VNE oil has been placed in heading 15.07. This also clearly shows that the acid oil and the VNE oil are clearly two separate products. Acid oil is a recovered product and is not VNE oil. This acid oil is sold quite often to other soap manufacturers. In this particular case, M/s. Kusum Products Ltd. have sold th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot volatile and cannot be distilled readily unless decomposed. They leave a permanent greasy stain on paper. They are readily hydrolised and oxidised when exposed to air. They are either liquid or solid. 7. It is claimed by the department that the acid oil was sold as acid oil and not as VNE oil. No VNE oil is sold as VNE oil. In fact there is no such thing in commerce. Oils are sold as groundnut oil, coconut oil, castor oil, linseed oil etc. 8. The Board says that the BTN classifies acid oil under a head (15.10) different from the one from VNE oil (15.07). First of all, the BTN does not recognise any such thing as VNE oil. But what the Board did not see was that both 15.07 and 15.10 are under the same Chapter 15 : Animal and Vegetabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom refining fall in heading 15.10 ( Fatty acids ; acid oils from refining ; fatty alcohols ). These acid oils have a relatively high free acid content and are prepared by decomposing with mineral acid the soap-stock obtained during refining of crude oils. 14. It must be noted, however, that Chapter 15 of the CCCN is wide in its scope covering animal and vegetable fats and oils and their cleavage products/prepared edible fats, and animal and vegetable waxes. The Central Excise Tariff Item No. 12, CET with which we are presently concerned, covers vegetable non-essential oils, all sorts . We have, therefore, to see whether acid oils are known and recognised as VNE oils. The classification under the CCCN would not, in my view, provide a re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seeds, fruits or nuts of plants and generally considered to be mixtures of mixed glycosides, (see Condensed Chemical Dictionary by Gessner G. Hawley). 17. Thus, acid oils are recognised in literature as oils. If these are of vegetable origin, they would be classifiable as vegetable oils. Item No. 12, CET covers, as we have noted, all sorts of vegetable non-essential oils. There is nothing in the wording of the item to even remotely suggest that the scope of the item is confined to oils which are the immediate result of extraction from vegetable material. It could cover even oils which may be the result of refining or cleavage of such oils so long as they are recognised as oils. And we have seen that the authoritative book Bailey s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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