2010 (6) TMI 732

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....vides for other edible oils, including vanaspati as claimed by the assessee. We have heard counsel for the petitioner and the Government Pleader for the respondent. In the context of the entries in the Third Schedule to the KGST Act, we have vide our decision in State of Kerala v. Aluva Sugar Agency reported in [2007] 8 VST 726 (Ker) held that "margarine" cannot be treated as an item falling under the entry provided for edible oil when it is specifically covered by another entry along with hydrogenated oils and other items. However, since the petitioner has a case that entries contained in the Schedule and in the notification issued under the KVAT Act are different from those contained in the KGST Act, we proceed to decide the issue on the....

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.... (19) Other partly or wholly hydrogenated vegetable oils     (a) cottonseed oil 1516.20.11   (b) groundnut oil 1516.20.21   (c) castor oil 1516.20.31   (d) other including vanaspati 1516.20.91  Counsel for the petitioner relied on a certificate issued by the Chief Food Inspector who has explained margarine with reference to the provisions of the Prevention of Food Adulteration Act as follows: "Margarine means an emulsion of edible oils and fats with water comes under bakery vanaspati, an industrial product, is different from the margarine made out of milk fat with vegetable oils, a consumer product, comes under milk product. Both are called margarine." Relying on the Food Inspector's letter....

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.... In fact it is clear from entry 38(19) that all four items referred to there are covered under six digit HSN 1516.20. We are of the view that petitioner's contention that margarine falls under other edible oils falling under entry 38(19) is incorrect and unacceptable. We, therefore, hold that margarine in all forms fall under HSN code 1517 under the customs tariff and consequently it is covered by entry 64(8) of S.R.O. No. 82 of 2006, which has the same HSN code taxable at 12.5 per cent.   Counsel for the petitioner has raised a contention that margarine referred to in entry 64(8) of S.R.O. No. 82/06 is only margarine made with one of the milk products as an ingredient. Of course, entry 64 of S.R.O. No. 82/06 cover generally milk ....