TaxTMI 
TaxTMI 
2012 (12) TMI 151
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....hapter heading 1516209, claiming exemption from additional duty of excise under Notification No. 4/2005. Subsequently, the department reclassified the goods under CTH 15.17 and also denied the benefit of exemption. This order of classification was upheld by the Commissioner (Appeals). 3. The appellant's main grounds of appeal are that there was no material on record to justify reclassification of the goods from CTH 1516 to CTH 1517. It was contended that in such matters of reclassification, the burden of proof is on the department and department could not produce any evidence in support of their stand. The appellant, in fact relied upon the specifications and wordings given in the Prevention of Food Adulteration Act, 1954, that, bak....
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.... Act is not relevant for the purpose of classification under Customs Tariff Act or Excise Tariff Act. Further, both vanaspati and bakery shortening may be considered similar under PFA Act based on their usage as food products, but under Customs Act each product can have different classification based on its nature. As explained earlier shortening have undergone further preparations for food purposes as texturation (modification of the texture or crystalline structure) and Chapter 1516 excludes such items." 5. We have perused the records and various contentions raised by both, Revenue as well as the appellants. Chapter heading 15.16 of the Harmonious System Nomenclature (HSN) reads as follows :- "15.16 - ANIMAL OR VEGETABLE ....
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....(2) Wholly hydrogenated (e.g. oils converted into pasty or solid fats). The products most commonly hydrogenated are oils of fish or marine mammals and certain vegetable oils (cotton-seed oil, sesame oil, ground nut oil, cloza oil, soyabean oil, maiz (corn) oil, etc.) Wholly or partly hydrogenated oils of this type are frequently used as constituents in the preparation of edible fats of heading 15.17, since the hydrogenation not only increases their consistency but also makes them less liable to deterioration by atmospheric oxidation, and improves their taste and odour, and, by bleaching them, give them a better appearance.    This part also covers hydrogenated castor oil, so called "opal wax" ....
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....es will demonstrate that products under Chapter 1516 wholly and partly hydrogenated oils and are frequently used as constituents in the preparation of edible fats of heading 15.17. It is also clear that margarine, edible mixtures or preparation of animal or vegetable fats or oils wholly fall under heading 15.16, which are other than the edible fats or oils for their fractions of heading 15.16. In the instant case, it is absolutely clear that the goods merit classification under 15.16 and need not to go to the Chapter 15.17. We find that, for classifying the goods under Chapter heading 1517, it would be necessary to show that the same had been further prepared by a processes like emulsification, churning, texturation etc., to change the basi....
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....terials by adducing proper evidence. Unfortunately, no such attempt was made. As stated, the evidence led in this case conclusively goes to show that Nylon Twine manufactured by the assessees has been treated as a kind of Nylon Yarn by the people conversant with the trade. It is commonly considered as Nylon Yarn. Hence, it is to be classified under Item 18 of the Act. The Revenue has failed to establish the contrary. We would do well to remember the guidelines laid down by this Court in Dunlop India Ltd. v. Union of India [1983 (13) E.L.T. 1566 (S.C.) = (AIR 1977 SC 597 - at page 607)], in such a situation, wherein it was stated :- ".........When an article has, by all standards, a reasonable claim to be classified under an enumerated it....