Tariff classification of crude palm stearin turns on chemical evidence distinguishing triglycerides from free fatty acids.

Classification of imported crude palm stearin depends on whether the product is mainly triglycerides of fatty acids or free fatty acids. The text explains that the chemical examiner's report was inconclusive on ester value and overall composition, while the load port analysis showed ester and saponification values supporting triglycerides. It also notes that Circular No. 81/2002-Cus. treats palm stearin under heading 15.11 as basically triglyceride and heading 38.23 as free fatty acids, so proper chemical examination and reliable analytical evidence must govern classification. On that basis, the goods were classified under Chapter Heading 1511.90.90 rather than 3823.11.12.

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Issues: (i) Whether the imported crude palm stearin was classifiable under Chapter Heading 1511.90.90 or under Chapter Heading 3823.11.12 of the Customs Tariff Act, 1975.

Analysis: The classification dispute turned on whether the goods were mainly triglycerides of fatty acids, as claimed by the importer, or free fatty acids falling under the rival heading. The chemical examiner's report recorded only free fatty acid content and did not determine the ester value or conclusively establish the balance composition of the sample. The load port analysis showed ester and saponification values, supporting the presence of triglycerides. Circular No. 81/2002-Cus. clarified that palm stearin under heading 15.11 is basically triglyceride, while heading 38.23 covers free fatty acids, and that classification should be decided after chemical examination to verify whether the goods are glycerides or a mixture of fatty acids. The earlier decision in the appellant's own case also accepted the load port analytical report.

Conclusion: The goods were held classifiable under Chapter Heading 1511.90.90 and not under Chapter Heading 3823.11.12.

Final Conclusion: The classification adopted by the lower authorities was set aside and the appeals were allowed with consequential relief on finalization of the bills of entry.

Ratio Decidendi: Where the rival tariff entries turn on whether the goods are triglycerides or free fatty acids, classification must be based on the proper chemical test and available reliable analytical evidence, and a specific tariff entry supported by such evidence will prevail over an erroneous broader classification.

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