2023 (11) TMI 824 - AT - Central Excise

Tribunal Confirms Edible Oil Classification, Dismisses Revenue Appeals on Test Delays and Carotene Levels.

The Appellate Tribunal CESTAT Bangalore upheld the initial classification of imported edible oil under Chapter Subheading 15111000 of the Customs Tariff ... Classification of goods - edible oil (palmolein) - classifiable under subheading 15119090 or not - inordinate delay in drawal of samples - HELD THAT:- The learned Commissioner (A) following the principle of law laid in the RUCHI SOYA INDUSTRIES LTD. VERSUS COMMISSIONER OF CUSTOMS, MANGALORE [2005 (8) TMI 228 - CESTAT, BANGALORE] has observed that since there was inordinate delay in drawal of samples and receiving the test reports, the carotene level of vegetable oils reduces with passage of time, hence, the test reports of the Customs Revenue Laboratory cannot be relied and accordingly, he has confirmed acceptance of the test report of the goods at the load port by the adjudicating authority. Accordingly, he has upheld the order of the adjudicating authority. There are no discrepancy in the said reasoning of the learned Commissioner (A) - Revenue’s appeals are being devoid of merit, accordingly dismissed. Issues involved: Classification of imported edible oil under Customs Tariff Act, 1975; Benefit of Notification No.21/2002; Reliance on test reports for classification.Classification of imported edible oil: The respondent imported edible oil and claimed its classification under Chapter Subheading 15111000 of Customs Tariff Act, 1975, benefiting from Sl. No.34 of Notification No.21/2002. However, a test report revealed carotene levels below the required threshold, leading to a different classification under subheading 15119090. Show-cause notices were issued proposing this new classification and denial of the claimed benefit. The Assistant Commissioner of Customs initially classified the product under CTH 15111000, extending the benefit under the Notification. The Revenue appealed the decision, arguing a delay in receiving test reports compared to a previous case.Benefit of Notification No.21/2002: The Revenue contended that the delay in receiving test reports impacted the carotene levels in the vegetable oils, affecting the reliability of the Customs Revenue Laboratory's reports. The Commissioner (A) upheld the initial classification, citing the reduction in carotene levels over time as a reason to rely on the test report from the load port. The Tribunal found no discrepancy in this reasoning and dismissed the Revenue's appeals for lacking merit.This judgment by the Appellate Tribunal CESTAT Bangalore addressed the classification of imported edible oil under the Customs Tariff Act, 1975, the application of Notification No.21/2002, and the reliance on test reports for classification purposes. The decision emphasized the impact of delayed test reports on carotene levels in vegetable oils and upheld the initial classification based on the test report from the load port.