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TMI Blog2019 (10) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... have their own expansions. Chapter 28 and 29 of the Customs Tariff refer to inorganic and organic chemicals. Every material in this universe will have chemical constituents - organic/ inorganic. Then can by referring to Chemical Structure, every product gets classified in these chapters. Such an argument is nothing but making the entire scheme of tariff redundant and hence the arguments advanced by the appellants need to be rejected on this ground itself. Appeal dismissed - decided against appellant. - Customs Appeal No. 85663 of 2019 - FINAL ORDER NO. A/86786/2019 - Dated:- 10-10-2019 - Mr. S.K. Mohanty, Member (Judicial) and Mr. Sanjiv Srivastava, Member (Technical) Shri J.C. Patel, Advocate, for the Appellant Shri Bhushan Kamble, Authorised Representative for the Respondent ORDER This appeal is directed against the order in original No. 93/2018-19/Commr./NS-I/JNCH dated 18.12.2018 passed by Commissioner of Customs (NS-I), JNCH, Nhava Sheva. By the said order Commissioner has held as follows: 13. Therefore, I order classification of the imported goods listed at paragraph 7 of the Show Cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant learned advocate submitted that- Capryclic Capric Triglyceride are an Ester formed by reaction of Capryclic Acid and Capric Acid with Glycerol and find use in Cosmetic preparations. Heading 291590 read with Note 5 of Chapter 29 specifically covers Caprylic Acid and its Ester. Heading 2915 covers Saturated Acrylic Monocarboxylic Acids. The Esters of these acids are also covered by heading no 2915 in view of Note 5(A) of Chapter 29. Further, the HSN Notes under Heading 2915 also clearly state that this heading covers saturated acyclic monocarboxylic acids and their anhydrides, halides, peroxides and peroxyacids esters and salts. Capryclic acid also known as Octanic acid is specifically mentioned in the Customs Tariff Heading No 29159020. Capric Acid, also known as Decanoic Acid, which is represented by the Chemical formula CH3(CH2)8COOH is also a saturated, acyclic, monocarboxylic acid and would fall under Custom Tariff heading No 29159090. The imported goods viz Caprylic Capric Triglyceride are an Ester formed by reaction of Caprylic Acid of Heading 2915 and Capric Acid of Heading 2915 with Glycerol of Heading 29 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have considered the impugned order with the submissions made in Appeal and during the course of arguments. 4.2 The basic argument advanced by the appellants to dispute the classification made by the Commissioner vide the impugned order is that the goods in question are specifically covered by the entries in chapter 29 and have been excluded from Chapter 15 by virtue of Chapter No 1(c). On the other hand Commissioner have held the classification under Chapter 15, by recording the reasons as follows: 8. I have gone through the case records and defence submissions. The dispute in this case revolves around classification of MTC. The process of manufacture, as per the show cause notice, and which is not disputed by the importer, involves separation of Capytlic and Capric acids from glycerol, mainly derived from coconut/palm kernel oil, which are then esterified( re-esterified ) to add glycerol back to the fatty acids to synthesise MTC, and then refining it to achieve desired level of purity. The Importer has classified the MCT under subheading 29159090. The 6 digit entry 299090is a residual entry which contains 4 entries, i.e. 29159010 for Acetyl Chloride, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the general formula RC(O) OR1 , in which , R and R1 are alkyl or aryl radicals (methyl, ethyl, phenyl etc ). Salts of carboxylic group(-COOH)by an inorganic cation, like sodium, potassium, ammonium. They are represented by the general formula RC(O)OM, where R is an alkyl, aryl or alkaryl radical and M is a metallic or other inorganic cation. 10. The products which have been imported in this case are Caprylic Capriate Triglyceride or other medium Chain Triglycerides. The processes undertaken in the manufacture of these MTCs, discussed hereinbefore, is quite akin to the processes described in the Explanatory Notes in the context of heading 15.16 . it is the contention of the importer that the Caprylic Capriate Triglyceride is an ester (corresponding to a salt in inorganic chemistry ) having chemical formula C21H40O5. This formulas is at a variance with the general formula of the esters as described in the Explanatory Notes, in so far as the alkyl/aryl/alkaryl radical as well as the metallic or other inorganic cation are not reflected in the said formulas. Paragraph 4.1 of the show cause notice, which has not been challenged by importer in their defence submission, q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes the mixture of fatty acids which prevents it from turning rancid. The saturated fatty acid mixture is then fractioned to derive various fatty acids including Caprylic acid (C8H16O2) and Capric fatty acid(C-10H20O2) which are re-esterified with glycerine (Glycerol group) to get Caprylic/Capric Triglycerides which are medium chain triglycerides. As per HSN General Note to Chapter 15, the chapter covers animal or vegetable fats and oils, whether crude, purified or refined or treated in certain ways (e.g. boiled, sulphurised or hydrogenated). Further, the HSN Explanatory notes to sub-heading 15.16 reads as under:- This heading covers animal or vegetable fats and oils, which have undergone a specific chemical transformation of a kind mentioned below, but have not been further prepared. The heading also covers similarly treated fractions of animal or vegetable fats and oils. (A) Hydrogenated fats and oils. .......................................... (B) Inter-esterified, re-esterified or elaidinised fats and oils. (2) Re-esterified fats and oils (also called esterified fats and oils) are trigly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ric Triglycerides (CCT) are mistakenly called Fractionated Coconut Oil. Caprylic Capric Triglycerides are a specialized esterification of Coconut Oil using just the Caprylic and Capric Fatty Acids, while Fractionated Coconut Oil is a, standard, distillation of Coconut Oil which results in a combination of all of the fatty acids, pulled through the distillation process. Fractionated Coconut Oil has the same feel, and performance, of traditional vegetable oils with a lighter feel and extended shelf life, than most common carrier oils. Caprylic Capric Triglycerides do not feel like a standard carrier oil, at all. Caprylic Capric Triglycerides are an ester and have a very light, silky oil, feel that is not at all greasy / oily feeling on the skin. There are many suppliers that haven't recognized the difference between these two products, which is unfortunate for the discriminate formulator because the two are not interchangeable. Just because they both come from coconut oil doesn't make them the same thing. If that rationale were accurate then they would have to say that Neroli, Petitgrain, and Bitter Orange are all the same thing because they all come from the same tree, or th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... coconut oil. Caprylic triglyceride has been widely used for more than 50 years. It helps smooth skin and works as an antioxidant. It also binds other ingredients together, and can work as a preservative of sorts to make the active ingredients in cosmetics last longer. Caprylic triglyceride is valued as a more natural alternative to other synthetic chemicals found in topical skin products. Companies that claim that their products are all natural or organic often contain caprylic triglyceride. While it s technically made of natural components, the caprylic triglyceride used in products isn t usually found in nature. A chemical process separates the oily liquid so that a pure version of it can be added to products. (http://wwww.healthline.com/health/caprylic-caprictriglycerides) Note- All the web-pages referred above were visited and assessed on 06.10.2019) 4.4 In our view the all the published literature support the findings recorded by the Commissioner in the impugned order to the effect that the goods imported are nothing but re-esetrified fat/ oil. On going through the published liter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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