Tariff classification of cocoa butter turned on commercial meaning: not an oil, but treated as food for customs purposes.

Cocoa butter was held not to fall within the tariff description of vegetable non-essential oils because, in commercial understanding, oil is ordinarily liquid and cocoa butter is solid at ambient temperature. It was, however, treated as food for tariff purposes because it is used in the preparation of chocolate and enters into human food, even if not directly edible. The broader tariff scheme supported construing "food" to include related food preparations. Accordingly, cocoa butter was correctly classifiable under the food item and not under the oil item.

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Issues: Whether cocoa butter was classifiable as "vegetable non-essential oils not elsewhere specified" under Item 15(6) of the Indian Customs Tariff or as "all sorts of food not elsewhere specified" under Item 21(2) of the Indian Customs Tariff.

Analysis: Cocoa butter, though of vegetable origin and non-essential in character, was held not to answer the commercial understanding of "oil" because it is solid at ambient temperature, unlike oil which is ordinarily liquid, and it was also noted to have low toxicity rather than the characteristics attributed to vegetable oil. For the alternate claim, the expression "food" was construed broadly. Since cocoa butter is used in the preparation of chocolate and thus enters into human food, it was treated as falling within the description of food. Reliance was also placed on the tariff scheme, particularly Section IV of the Indian Customs Tariff, which groups food preparations and related items, showing that an article need not be edible directly to qualify as food for tariff purposes.

Conclusion: Cocoa butter was not classifiable under Item 15(6) of the Indian Customs Tariff and was correctly classifiable under Item 21(2) of the Indian Customs Tariff.

Final Conclusion: The revision was unsuccessful and the classification adopted by the appellate authority was affirmed.

Ratio Decidendi: For tariff classification, the commercial and ordinary understanding of the product governs, and an article used in the preparation of human food may be treated as food even if it is not directly edible.

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