2005 (4) TMI 404

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....s and perused the records. During the hearing of the case, ld. Counsel produced a flow chart of "Soyabean Processing". We reproduce that flow chart for the purpose of examining the classification dispute.      FLOW CHART OF SOYABEAN PROCESSING HULLS .... X PROTEINS + ........   CATTLE FEED INGREDIENT   Toasting Winding   SOLVENT EXTRACTION   SOYABEANS   CLEANING, GRADING, DRYING TEMPERING, CRACKING FLAKING   FOOD GRADE HEXANE   DEFATTED FLAKES 48-50% PROTEIN   CRUDE OIL   DEGUMMING @ 80°   NEUTRALISATION 85°C   BLEACHING @ 120°   DEODORISATION 250°C @ -750mmh....

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....ion." It may straightaway be noted that the applicability of this item is in respect of "residues" remaining after the extraction of the oil from soyabeans by solvents or in a press or rotary expeller. It is also pertinent to note that "these residues constitute valuable animal foods". It is on record that "soya gum" in question is used in soap industry and not in animal food manufacturing industry. Similarly, it is also not a 'residue' after extraction of oil. The flow chart shows this item as emerging in the very first stage of processing of crude oil. Thus, it is clear that crude gum does not satisfy the use or stage of emergence mentioned in the explanatory note. Therefore, its classification cannot be under Heading 23.04. Therefore,....

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....making." 7. It has to be noted that "oily or mucilaginous residues resulting from the purification of oils" is specifically covered under this heading. Heading Note also mentions use of the item "in soap making". As already noted, crude gum emerges in the purification of oils. It is also used in the manufacture of soaps. Thus, both the conditions mentioned in the note are satisfied. In view of this, we are of the opinion that the Revenue's contention relating to classification of this item under Heading 15.07 has to be accepted. 8. What is stated above applies equally to the classification of soya soap. Therefore, the Commissioner's order has to be modified in relation to this item also. 9. In the result, it is held ....