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of <h1>Imported Goods Classification Appeal Emphasizes Storage Conditions & Scientific Data</h1> The Tribunal allowed the appeals of the appellants concerning the classification of imported goods, emphasizing the importance of proper storage ... Classification of imported goods - crude palm oil - to be classified under CTH 1511000 or under heading 15119090 - N/N. 21/2002 - Held that: - the test on the samples taken were conducted after more than 10 days of the drawing of the samples and further we do not have the evidence to the fact that the sample of the goods were stored in ideal condition - also, the basis of various scientific data that the beta carotenoid content in crude palm oil decreases with the passage of time if the same is not stored in proper temperature. In the case of Ruchi Soya Industries Ltd. [2008 (4) TMI 711 - CESTAT BANGALORE], this Tribunal has held that the carotene value changes over a period of time borne out by scientific opinion. Appeal allowed - decided in favor of appellant. Issues:Classification of imported goods, application of Notification No.21/2002, demand of short levy, storage conditions affecting carotenoid content, consideration of scientific data.Classification of Imported Goods:The appellants imported crude palm oil and claimed assessment under CTH 1511000 with the benefit of Notification No.21/2002. The Department proposed classifying the goods under heading 15119090 due to low carotenoid content. The Deputy Commissioner confirmed the demand of differential duty, which was upheld by the Commissioner(Appeals).Application of Notification No.21/2002:The appellants argued that the impugned orders did not consider crucial facts, such as the need to store crude palm oil in ideal conditions to maintain beta carotene content. They provided certificates from the supplier indicating carotenoid levels above 500mg/kg at the time of shipping. The temperature maintenance during voyage was also highlighted to prevent quality depletion.Demand of Short Levy:The demand was based on test reports conducted after a delay of 10 days from sample drawing. Scientific data presented showed a decrease in beta carotenoid content over time if not stored at proper temperatures. The appellants relied on previous decisions like Ruchi Soya Industries Ltd. cases to support their argument.Storage Conditions Affecting Carotenoid Content:The Tribunal observed that the test results, along with scientific data, indicated a decrease in carotenoid content over time without proper storage conditions. The Division Bench emphasized the importance of controlled temperature storage to maintain beta carotene levels in crude palm oil.Consideration of Scientific Data:Citing previous decisions, the Tribunal noted that carotenoid content changes over time due to temperature variations and storage conditions. The impugned orders were deemed unsustainable in law based on the scientific evidence presented, leading to the appeals of the appellants being allowed.This judgment highlights the significance of considering storage conditions and scientific data in assessing imported goods, particularly regarding carotenoid content in crude palm oil. The Tribunal's decision was influenced by the need for proper storage to maintain beta carotene levels and the impact of time and temperature variations on carotenoid content.
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