TaxTMI 
TaxTMI 
2009 (12) TMI 398
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..... The relevant facts that arise for consideration are appellants imported crude palm-oil through Kakinada port and filed bills of entry declaring the goods as palmolein of edible grade in bulk falling under sub-heading 1511 90 90 of Customs Tariff, Act 1975. Since the percentage of FFA of the cargo as per load port analysis was more than the maximum limit prescribed under PFA Act, the importers were asked to classify the goods as Crude palmolein of non edible grade, falling under Ch. Sub-heading No. 1511 10 00 and the bill of entry was assessed provisionally subject to the test analysis results. The Port Health Officer, Kakinada informed that the sample is having an Acid Value of 10.74 as per the analysis of Junior Scientific officer and Pu....
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....ctionation of palm oil obtained from the fleshy mesocarp of fruits of oil palm (Elaeis guinensis) tree by the method of expression or solvent extraction. It shall be clear, free from rancidity, suspended or other foreign matter, separated water, added colouring and flavouring substances or mineral oils. It shall conform to the following standards, namely: (a) Butyro-refractometer reading at 40°C or 43.7 to 52.5 Refractive Index at 40°C 1.4550-1.4610 (b) Iodine value (Wijs' method) 54.62 (c) Saponification value 195-205 (d) Cloud paint &n....
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....indicate evidence of test parameters like refractive indexes, iodine value, cloud point, flash point despite specific standards stipulated for palmolein. As per Rules 5 of PFA rules 1955. Without any of these tests being performed, P.H.O, merely harps upon acid value. For acid value PHO is the only authority and not the chemical examiner. It is his submission that, however, after refining the PHO has certified the cargo as fit for human consumption. He would submit that the CBEC Circular No. 29/97-Cus., dated 31-7-1997 and 40/01-Cus., dated 13-7-2001 clearly cover the issue as the said circulars have clarified that the term vegetable oils of edible grade will cover vegetable oils which are fit for human consumption after further processing.....
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....he PFA Act. It is only the PHO who is a statutory authority under this Act. It is his submission that carotenoid content (as beta carotene) is reported to be 451 mg per kg and it is noticed that less than 500 mg per kg is the requirement of the notification. He would submit that the carotenoid value goes down as the time elapses. He would submit that in an identical situation in the case of Ruchi Soya Industries case [2006(206) E.L.T. 827 (Mum.)] it is held that carotenoid value should be considered immediately. He would also submit that the load port analysis of the said consignment says beta carotene value as 503. It is also his submission that CBEC Circular Nos. 36/01, 58/01 and 28/06 specifically direct the authorities i.e. Customs Auth....
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....otification No. 21/02 as amended by Notification No. 120/2003 dated 1-8-2003. It is undisputed in these cases that the appellant had imported crude palm oil through Kakinada Port and filed bills of entry. The first test report of public health officer clearly indicted that the said sample contained acid value of 10.74 and is therefore adulterated. Subsequent to the purification of the said sample as per the direction of the Hon'ble High court of A.P. the said samples was tested by the PHO and he opined that the refined palmolein is confirming to the standards of PFA Act and rules. 7. The main contention of the appellant that once the port health officer has given a certificate that the imported palmolein after refining is confirming to t....