Tariff classification of soya gum and soya soap turns on residues from oil purification and their use in soap manufacture.

Soya gum and soya soap generated during purification of crude soya oil were held classifiable under Heading 15.07, not Heading 23.01, because they were oily or mucilaginous residues arising from oil purification rather than residues or waste from the extraction stage of soyabeans. The tariff notes for Heading 15.07, which cover residues from the treatment of fatty substances and soap-stocks used in soap manufacture, matched the character and end use of the goods. Revenue's classification under Heading 23.01 was therefore rejected.

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Issues: Whether soya gum and soya soap, arising during purification of crude soya oil, were classifiable under Heading 15.07 or under Heading 23.01 of the Central Excise Tariff Act, 1985.

Analysis: Heading 23.01 covered residues and waste from food industries, including oil cakes. The item in dispute was not a residue left after extraction of oil from soyabeans, but emerged in the purification stage of crude oil, and it was used in the soap industry rather than as animal feed. The explanatory notes relating to the competing tariff entry covered oily or mucilaginous residues resulting from purification of oils and soap-stocks used in soap-making, which matched the character and end use of the goods.

Conclusion: Soya gum and soya soap were classifiable under Heading 15.07 and not under Heading 23.01. The classification adopted by the Revenue was upheld.

Ratio Decidendi: Goods that are oily or mucilaginous residues generated during purification of oils and used in soap manufacture fall within the tariff heading covering residues resulting from treatment of fatty substances.

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