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TMI Blog2022 (2) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... here are no edible crops. Thus, edible can only mean fit to be eaten and cannot mean fit to be eaten or consumed as such . It is for this reason, undisputedly, the oil imported by the appellant was described as Crude Palmolein oil (edible grade) which is evidently edible oil and not one which is fit only for industrial or other uses. The fact that it needs to be refined being consumed makes no difference and it is still edible such as rice and wheat are edible. It is now a well established legal principle that the Chapter Notes, Section Notes and Rules of Interpretation of the Customs Tariff are meant to interpret the tariff and they cannot be applied to interpret exemption notifications. The description of the goods in any exemption notification must be interpreted as they are commonly understood. Of course, if the exemption notification indicates both the Description of goods and the Customs Tariff heading, it needs to be decided if the goods fall under the Customs Tariff heading for which purpose, the Chapter Notes, Section Notes and Rules of Interpretation must be applied. The description of the goods must be taken as are commonly understood. In this case, the documents show th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority held that the appellant was eligible to the benefit of exemption only to the extent of 50% by availing the benefit of DEPB and the remaining 50% had to be paid in cash and confirmed the demand accordingly. This decision was, on appeal, upheld by the Commissioner (Appeals) by the impugned order Order-in-Appeal No. 16/2009 (V-II) Cus DATED 12.08.2009, which is the subject matter of Appeal No. C/622/2009. 2. Similarly, another consignment of 497.586 MT of crude palmolein oil of edible grade was imported by the appellant and warehoused through a Bill of Entry dated 7.12.2007. The appellant filed ex-bond Bill of Entry dated 11.02.2008 to clear 470.264 MT of crude palmolein oil (edible grade), of which half (235.132) was proposed to be cleared on payment of duty in cash and the remaining half claiming the benefit of notification no.89/2005 using the DEPB credit. The original authority passed an order allowing benefit to the extent of only 50% under notification no. 89/2005, which decision was upheld by the Commissioner (Appeals) by Order-in-Appeal No. 17/2009 (V-II) Cus DATED 12.08.2009 which is the subject matter of Appeal No. C/623/2009. 3. The issue in both cases is, thus, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Development and Regulation) Act, 1992 (22 of 1992) or an officer authorized by him to grant a licence under the said Act; (iii) "applied rate of duty" means the standard rate of duty specified in the First Schedule to the said Customs Tariff Act with respect to the goods specified in column (2) of the said Table, read with any other notification (for the time being in force) issued in respect of such goods under sub-section (1) of section 25 of the said Customs Act; (iv) "applied rate of additional duty" means the additional duty leviable under section 3 of the said Customs Tariff Act with respect to the goods specified in column (2) of said Table, read with any other notification (for the time being in force) issued in respect of such goods under sub-section (1) of section 25 of the said Customs Act. (F.NO.605/128/2005-DBK)" 5. We heard learned counsel for the appellant and learned authorised representative for the department and perused the records. The questions to be decided are: (i) Is Crude Palmolein Oil (edible grade) to be considered as 'Edible oil' or 'Goods other than edible oil' as per the notification? (ii) Consequently, is the appellant eli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red under the same ex-bond Bill of Entry be considered as one lot and the benefit of exemption extended to the entire quantity. 8. We have considered these submissions. The appellant submits that Crude Palm Oil (edible grade) is not edible oil because it is not fit to be consumed. Edible must be something which is fit to be consumed. We find it difficult to accept this submission because it would mean 'edible' whose plain meaning is fit to be eaten or consumed should be read as 'fit to be eaten or consumed as such'. If this argument is accepted, vast majority of things which are edible will become inedible. Edible oils will be an oxymoron because, with few exceptions (such as olive oil), oils cannot be consumed as such but must be cooked with other things such as, vegetables. Rice and wheat are not edible crops because they require a lot of processing such as threshing, de-husking, polishing, milling, washing, cleaning, kneading and rolling (in case of wheat) and cooking for them to be edible. Even vegetables such as cauliflower and potatoes are inedible until they are cooked. Except fruits and a few others, there are no edible crops. Thus, edible can only mean 'fit to be eaten' a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gum, and any substance, including water used into the food during its manufacture, preparation or treatment but does not include any animal feed, live animals unless they are prepared or processed for placing on the market for human consumption, plants, prior to harvesting, drugs and medicinal products, cosmetics, narcotic or psychotropic substances:" 12. Thus, the term food includes water, alcoholic drinks and chewing gum, none of which are commonly known as food. If an exemption notification, for instance covers food, the above definition under FSSAI Act cannot be applied to extend it to chewing gum, etc. The description of goods in any exemption notification must be understood as they are commonly understood. 13. The argument of the appellant what they have not paid in cash has been debited through DEPB and hence it is a Revenue neutral situation cannot also be accepted. If this view is taken, the distinction between edible oils and other goods in the exemption notification becomes meaningless as in each and every case, a debit to the extent of duty not paid in cash is made in the DEPB account. We also find strong force in the argument of the Revenue that even if two views are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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