Refined and edible grade classification can secure customs exemption even if the goods may also serve cosmetic use.

Imported shea butter ultra refined classifiable under Chapter 1515 qualified for exemption under Notification No. 12/2012-Customs at Sl. No. 58 because the goods were described as refined and edible grade and there was no contrary laboratory or documentary evidence from the department. The notification did not impose any end-use restriction, so a possible cosmetic use did not defeat the exemption once the tariff description and notification conditions were met. The concessional Basic Customs Duty benefit was therefore available and the denial of exemption was set aside.

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Issues: Whether the imported shea butter ultra refined, classified under Chapter 1515 of the Customs Tariff Act, 1975, was entitled to exemption under Notification No. 12/2012-Customs dated 17.03.2012 at Sl. No. 58 as refined and edible grade goods, notwithstanding the department's objection that it was intended for cosmetic use.

Analysis: The imported consignment was declared under sub-heading 1515 9091, and the supplier's certificate described it as shea butter ultra refined of edible grade. Sl. No. 58 of the notification covered goods falling under the relevant heading if they were refined and edible grade. No laboratory test or other material was produced by the department to disprove the edible and refined nature of the goods. The notification did not prescribe any end-use restriction, and the fact that the consignment may be used in the cosmetic industry did not, by itself, defeat the exemption once the tariff description and the notification conditions were satisfied.

Conclusion: The importer was held entitled to the concessional rate of Basic Customs Duty under Notification No. 12/2012-Customs, and the denial of exemption was set aside.

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