2013 (9) TMI 379

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.... Assistant Commissioner of Central Excise, Vikhroli Division under the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996 for import of crude palm stearin oil at concessional rate of customs duty for its use in the manufacture of industrial fatty acids. They had furnished a bond dated 19-12-2006 under the said Rules for an amount of Rs. 6,13,76,239/- being the differential duty involved on 5000 MTs of crude palm stearin to be imported at concessional rate of customs of 10% ad valorem (BCD) + 4% ad valorem (ACD) + 2% Education Cess under Notification No. 21/2002-Cus., dated 1-3-2002. 2.2 During the audit of the records of the assessee, it was noticed that the appellant should have importe....

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....factory for splitting up of crude palm stearin into fatty acids and glycerols. What they are manufacturing in their factory is stearic acids falling under Heading No. 38.23 of the Customs Tariff which covers industrial mono carboxylic fatty acids. Stearic acid is also a fatty acid though used for industrial purposes and therefore, they are rightly covered under serial No. 30(A) of the table annexed to Notification No. 21/2002 and eligible for concessional rate of basic customs duty of 10% ad valorem. Serial No. 30(C) applies to goods (except crude palm oil) having free fatty acids 20% or more and falling under various headings specified therein for the manufacture of soaps, industrial fatty acids and fatty alcohols and attracts basic custom....

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....iven in the orders of the adjudicating and appellate authorities. 5. I have carefully considered the rival submissions. The competent entries in this case are reproduced below : S. No. Chapter Heading or Heading No. or sub-heading No. Description of Goods Standard rate Additional duty rate Condition No. 30 15 (A)  Crude palm stearin having Free Fatty Acid (FFA) 20 percent or more and falling under heading 1511, imported for manufacture of soaps, fatty acids and fatty alcohols by a manufacturer having plant for splitting up of such oils into fatty acids and glycerols 10% - 5     (B)  ............           (C)  All goods (excep....