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TMI Blog2015 (12) TMI 1443X X X X Extracts X X X X X X X X Extracts X X X X ..... TA would not cover in Chapter 15. Section VI of CETA covers “Products of Chemical or allied industries.” In the present case, EPO is edible grade oils and sold as EPO in capsules with the name of “Primosa” and “Simrose.” We find that the similar issue was raised before the Tribunal in the case of M/s. Supreme Enterprises (2015 (2) TMI 954 - CESTAT MUMBAI). This product is of Amazon origin and inca inchi oil is a natural oil extracted from the seeds of the Inca Inchi tree. The oil contains natural vitamins and antioxidants (Omega 3) and has not been chemically modified at all. Revenue contended that the product is claimed to have properties of preventing blood clotting triglycerol blood sugar and so on. The Tribunal held that impugned product merits classification in under Sub-heading No. 1515.90 of CTA. In the present case, it should be kept in mind that the Customs Authorities classified EPO under Sub-heading No. 1515 of CTA and the dispute was raised by Central Excise Authorities - products “Primosa” and “Simrose” would be classifiable under Heading No. 15159091 of CETA and not under sub-heading No. 30049069 of CETA and the demand of duty alongwith interest and penalty can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30049069 of CETA as held by the Adjudicating Authority. The Learned Advocate fairly submits that earlier, they were disputing the exciseability of the goods. But, now, they are not contesting the said issue of manufacture before the Tribunal. It is submitted that these goods are classifiable under Chapter 15 of CETA 1985. He further submits that this issue is settled by the Tribunal, in their own case M/s Banner Pharmacaps (I) Pvt. Ltd. Vs Commissioner of Central Excise, Bangalore 2005 (183) E.L.T. 151 (Tri.-Bang), upheld by the Hon ble Supreme Court by judgement dated 11.12.2006 in Civil Appeal D. No(s) 24783 of 2006. It has been held that Primosa and Simrose , which are encapsulated fixed vegetable oils, classifiable under heading No. 15.03 of CETA, as fixed vegetable oil. He also submits that the said decision was followed by the Tribunal in the case of M/s Supreme Enterprises Vs. Commissioner of Customs (Exports), Nhava Sheva 2015 (316) E.L.T. 274 (Tri.-Mumbai). He also referred various decisions, but, the decisions as referred above are directly on the issue and also filed compilation of case laws. 5. The Learned Authorised Representative on behalf of the Revenue reitera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vitamin or iron as the item continues to be the same as vegetable oil under Chapter 15. The ingredients are not added in the impugned items and resultant product does not come under CH 2108.99 as Edible preparations not elsewhere specified or included . Hence, the classification adopted by the Commissioner in the present case to hold the Primosa and Simrose oil, which are encapsulated to fall under CSH 2108.99 is required to be set aside by allowing the appeals. The appeals are allowed with consequential relief, if any. 7. The Learned Advocate submits that they imported Evening Primrose Oil (EPO) classifiable under sub-heading No. 1503 of the Customs Tariff Act, 1975 and encapsulated i.e. packed in small capsules. The manufacturing process of Primosa is as under:- The main raw Material is EPO which is a fixed oil obtained from the seeds of Oenothera Biennis containing Linolenic Acid with some Gamolenic Acid. The EPO is first analyzed as per the specifications upon receipt. The EPO is subjected to inspection to ensure that the same is as per the required specifications. The required quantity for a batch is dispensed in Medicine Tank, which is staged in the di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 of the CETA reads as below:- Notes: The chapter does not cover: a) pig fat or poultry fat of heading 0209; b) cocoa butter, fat or oil (heading 1804); c) edible preparations containing by weight more than 15% of the products of heading 0405 (generally chapter 21); d) greaves (heading 2301) or residues of heading 2304 to 2306; e) fatty acids, prepared waxes, medicaments, paints varnishes, soap, perfumery, cosmetic or toilet preparations, sulphonated oils or other goods of Scection VI; or f) factice derived from oils (heading 4002). It is contended by the Learned Authorised Representative that Evening Primrose Oil (EPO) contained fatty acids, and therefore, it would not come under Chapter 15. 11. It is evident from record that EPO is a fixed oil obtained from the seeds of plant containing Linolenic Acid with some Gamolenic Acid. It is encapsulated i.e. packed in small capsules in the appellants premises. It is not chemically modified. The Fatty acids contained in EPO is natural ingredient. There is no addition of fatty acid under Section VI of CETA. As per Chapter Note I (e) of Chapter 15 of CETA, fatty acid of Section VI of CETA w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact many of these items are used in daily cooking also. Therefore, merely because a product possess certain natural properties, it cannot be said to fall under the classification of medicaments. 4.2 We find that in the Banner Pharmacaps (I) Pvt. Ltd. case, an identical issues arose for consideration before this Tribunal as to whether Primosa and Simrose oil which are encapsulated would fall in the category of vegetable oil under CTH 1503 or as Dietary Food Supplement under CTH 2108.99. This Tribunal came to the conclusion that these are merely encapsulated and nothing has been added and the product remains vegetable oil meriting classification under CTH 1503. In our view, the ratio of the said decision would apply squarely to the facts of the present case. As regards the Capsulation Services Ltd. case relied upon the Revenue, the issue involved related to a classification of a preparation containing vitamins and pro-vitamins. They were manufactured goods and not naturally occurring substances. Hence the said decision is distinguishable on facts and hence has no application. Accordingly, we agree with the contention of the appellant that the product merits classification ..... X X X X Extracts X X X X X X X X Extracts X X X X
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