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TMI Blog2017 (9) TMI 1489X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 01.03.2006. Appellants also cleared Palm Fatty Acids and Acid Oil on payment of duty. During the period September 2008 to March, 2009, appellant cleared Palm Stearin under CETH 1511 9090, claiming exemption under said notification i.e. 03/2006-CE. It appeared to the department that impugned item requires to be classified under CETH 3823 1900 since a specific tariff heading has been provided thereunder. This view of the department was addressed to the appellant on 03.12.2008 who in response, vide letter dated 12.01.2009, furnished details of the physical refining which resulted in separation of Palm Stearin from Palm oil and defended the classification under CETH 1511 9090. Alleging mis classification and evasion of Central Excise Dut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olid part emerging from natural fats or oils on saponification or hydrolysis is commonly known as stearic acid or stearin and consists mainly of palmitic and stearic acids with small proportion of unsaturated fatty acids. The fatty acids covered under CETH 3823 are different organic compounds when compared with the esters of fatty acids. They are obtained by saponification or hydrolysis of esters of fatty acids. (iv) Palm Stearin that emerges from fractionation of crude palm oil is composed primarily of triglyceride of stearic acid along with triglycerides of some other fatty acids such as palmitic acid. This stearin may be crude or refined. Since Chapter Heading 3823 seeks to cover fatty acids obtained chemically breaking down the esters ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case. The core issue that comes up for appellate decision concerns the classification of impugned goods, namely, whether it would be classifiable under CETH 1511 11 or as CETH 3823 11. 6.1 Revenue seeks to classify the goods as 3823 1112 on the reasoning that said entry specifically covers RBD Palm Stearin. On the other hand, appellant contends that Palm Stearin produced by them since not chemically modified, will merit classification only under CETH 1511. 6.2 To better understand this controversy, it would be useful to understand what exactly is RBD Palm Stearin. As per data from the website of Malaysian Palm Oil Board, from where bulk of the world's palm oil production emanates (www.Palm oilworld.org), Crude Palm oil is subje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ular No.81/2002 Cus, dated 03.12.2002 to contend that palm stearin would fall under chapter heading 1511. 6.5 In the written submissions filed by appellant, at the time of personal hearing before original adjudicating authority, appellants once again submitted that the product manufactured by them is 'RBD PALM STEARIN'. They have also mentioned that Bleaching is done by using activity bleaching clay with physical refining come deodorisation is done by physical means at a very high vaccum under steam distillation. However, the nature and product cleared by appellant viz; Palm Stearin which is refined, bleached and deodorised resulting in RBD Palm Stearin, is not disputed by the appellant. 6.6 Another relevant aspect brought out in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t classification under the residual sub heading Other (1511 9090). That argument, in our view, will not pass muster. Further the impugned goods are sold for industrial use as evident from the facts. Hence they evidently will have to be considered as Industrial Monocarboxylic acids/acid oils from refining requiring classification under CETH 3923. 6.9 On the other hand, Palm Stearin has a separate triple dash (---) sub heading 3823 11 with the following further four dash (----) sub headings: 3823 11 11 ---- Crude 3823 11 12 ---- RBD 3823 11 19 ---- Other Since impugned Palm Stearin is Refined, Bleached and Deodorised (RBD) and sold for industrial use, it will then be classified under specific sub heading in 3823 11 12. 6.10 Viewed in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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