Classification of acid oil as vegetable non-essential oil under the specific tariff entry, not the residuary entry

Acid oil obtained from refining soap stock was treated as a recognised oil of vegetable origin and not excluded from the expression "vegetable non-essential oils" merely because it arose in refining or contained high free fatty acids. Its use in soap manufacture supported its character as an oil, and the broad wording of Item 12 was held to cover it. Item 68, being a residuary entry, could not apply where the goods properly fell within the specific tariff entry. Acid oil was therefore classifiable under Item 12 of the Central Excise Tariff, not Item 68.

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Issues: Whether acid oil obtained from refining soap stock is classifiable as vegetable non-essential oil under Item 12 of the Central Excise Tariff or as a residuary product under Item 68.

Analysis: Acid oil was found to be a recognised oil of vegetable origin and not excluded from the expression "vegetable non-essential oils" merely because it arose during refining or had a high free fatty acid content. Its use in soap manufacture supported its character as an oil. The broad wording of Item 12 was held sufficient to include such oils, while Item 68 was treated as a residuary entry not to be applied where the goods properly fell within Item 12.

Conclusion: Acid oil was classifiable under Item 12 of the Central Excise Tariff and not under Item 68.

Final Conclusion: The appeal succeeded and the assessee obtained classification of acid oil under the specific tariff entry for vegetable non-essential oils.

Ratio Decidendi: A vegetable-origin acid oil recognised in trade and literature as an oil, and not shown to fall outside the scope of vegetable non-essential oils, must be classified under the specific tariff entry for such oils rather than the residuary entry.

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