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TMI Blog2018 (10) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... NDIA], it was held that ‘palm stearin’ is specifically identified in Chapter sub-heading No. 3823 11 as ‘Palm Stearin’, and further differentiated as ‘Crude’ and ‘RBD’ in sub-heading Nos. 3823 11 11 and 3823 11 12 respectively. Ruling:- The product Refined Bleached Deodorised Palm Stearin, supplied by M/s. Gokul Agro Resources Ltd. is classifiable under Heading 1511. - GUJ/GAAR/R/2018/18 (IN APPLICATION NO. Advance Ruling/SGST&CGST/2017-18/AR/30) - - - Dated:- 30-8-2018 - R.B. MANKODI AND G.C. JAIN MEMBER Present for the applicant: Shri Ankit Parikh, CA The applicant, M/s. Gokul Agro Resources Limited, is engaged in the business of Oil Seed Crushing (Oil Mills), Refining Oil, Solvent Extraction, Fractionation, Hydrogenation and Packing. The applicant is dealing in edible oil such as Soyabean Oil, Cottonseed Oil, Mustard Oil, Groundnut Oil, Palm oil (Palmolein), Sunflower Oil, Vanaspati and Industrial Oil such as Castor Oil. 2.1 The applicant has submitted that it purchases Crude Palm Oil (HSN 1511 10 00) from either a foreign vendor or local vendor. Thereafter, the said Crude Palm Oil is refined in the storage tank from which Refined Palm Oil (HSN 1511 90 10) is g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led with cake, i.e. stearin, the feed is topped and high pressure fluid (usually compressed air) is admitted behind the membrane which being elastic, presses or squeezes the stearin mass in the chamber free of liquid olein entrained within the inter-spaces of the crystals out into the discharge channel following the path of the filtrate. When the squeezing operation is done, the frames are hydraulically opened and solid stearin drops into a stearin melting tank. The filter press is then closed for the next cycle of operation. 5. The applicant has submitted that RBD Palm Stearin will fall under Chapter 1511 as it is an outcome of Refined Palm Oil undergoing fractionation process. Also, Chapter 3823 mainly deals with the products which are more from the perspective of industrial use and not used for food application meant for human consumption. The applicant submitted that the RBD Palm Stearin which is manufactured by it is completely used for food applications meant for human consumptions. Hence, the applicant is of the view that RBD Palm Stearin should fall under Chapter 1511 and not under Chapter 3823. 6.1 The applicant, vide their letter dated 04.01.2018, submitted sample c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fined Bleached Deodorised) Palm Stearin being supplied by the applicant. 10. The Explanation (iii) and (iv) of the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 and Notification No. 1/2017-State Tax (Rate) dated 30.06.2017 provides as follows :- Explanation . - For the purposes of this notification, - (i) (ii) (iii) Tariff item , sub-heading heading and Chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. 11.1 The relevant entries for Chapter Heading 1511 and 3823 of the First Schedule to the Customs Tariff Act, 1975, prior to enactment of the Finance Act, 2017 were as under- HS Code Description of goods Unit (1) (2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iff item 1511 90 20 and the entries relating thereto, the following tariff item and entries shall be inserted, namely : - 1511 90 30 --- Refined bleached deodorized palm stearin Kg. 100% 90% (4) in Chapter 38, (a) in heading 3823, for sub-heading 3823 11 and tariff items 3823 11 11 to 3823 11 90 and the entries relating thereto, the following shall be substituted, namely: 3823 11 00 --- Stearic acid Kg. 30% - 11.3 In the Annexure IV (Legislative Changes), Part A (Customs), Sub-part III (Amendment in the First Schedule to Customs Tariff Act, 1975) of the D.O. F.No. 334/7/2017-TRU dated 01.02.2017 of the Joint Secretary (TRU-I), it has been mentioned as follows : S.No. Amendment Clause of the Finance Bill, 2017 1 To: (i) (ii) Create new tariff item 1511 90 30 for Refined bleached deodorised palm stearin to harmonize Customs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for Refined bleached deodorized palm stearin . Therefore, the product Refined bleached deodorized palm stearin is classifiable under Chapter Heading 1511 with Tariff Item 1511 90 30 in view of Rule 1 and Rule 3(a) of the General Rules for the Interpretation of the First Schedule to the Customs Tariff Act, 1975. 13. It is observed that CBEC Circular No. 81/2002-Customs dated 3.12.2002 was issued in the context of the then existing entries in the First Schedule to the Customs Tariff Act, 1975. Similarly, in the judgement of Hon ble Supreme Court, in the case of Commissioner of Central Excise, Customs Service Tax, Vishakhapatnam Vs. Jocil Ltd. [2011 (263) E.L.T. 9 (S.C.)] = 2010 (12) TMI 24 - SUPREME COURT OF INDIA , it was held that palm stearin is specifically identified in Chapter sub-heading No. 3823 11 as Palm Stearin , and further differentiated as Crude and RBD in sub-heading Nos. 3823 11 11 and 3823 11 12 respectively. However, the said judgement was rendered for the period August, 2003 to November, 2004, in the context of entries in the First Schedule to the Customs Tariff Act, 1975 existing during that period. As the relevant entries for Chapter Heading 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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