Crude soyabean oil classification prevails where processing does not alter its technical nature, despite non-edible grade status.

Soyabean oil emerging as a by-product in the manufacture of lecithin powder was held to remain classifiable under Heading 15071000 as crude oil, whether or not degummed, rather than under the residual Heading 15079090. The classification dispute turned on the product's chemical nature and the manufacturing record, which showed that the oil continued to be crude soyabean oil despite processing for lecithin powder. Its not being edible grade was not enough to place it in the other heading, and the Revenue failed to produce evidence displacing the earlier technical findings supporting crude oil classification.

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Issues: Whether soya oil emerging as a by-product during manufacture of lecithin powder is classifiable under Heading 15071000 as crude oil, whether or not degummed, or under Heading 15079090 as other than crude oil.

Analysis: The product emerging in the course of manufacture was soyabean oil falling under Heading 1507, and the dispute was confined to the eight-digit classification. The available record, including the manufacturing process and earlier chemical test-based examination, showed that the product continued to be crude soyabean oil even after undergoing the relevant processing for lecithin powder. The fact that the product was not edible grade did not by itself justify shifting it to the residual heading, because its nature had to be determined by chemical quality and applicable standards. The Revenue did not produce evidence to dislodge the earlier factual and technical findings accepting the product as crude soyabean oil.

Conclusion: The impugned soyabean oil is correctly classifiable under Heading 15071000 as crude oil, whether or not degummed, and not under Heading 15079090.

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