TaxTMI 
TaxTMI 
2018 (10) TMI 308
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....Sunflower Oil, Vanaspati and Industrial Oil such as Castor Oil. 2.1 The applicant has submitted that it purchases Crude Palm Oil (HSN 1511 10 00) from either a foreign vendor or local vendor. Thereafter, the said Crude Palm Oil is refined in the storage tank from which Refined Palm Oil (HSN 1511 90 10) is generated. Along with the Refined Palm Oil, there is a by-product which gets automatically generated which is called Palm Fatty Acid (HSN 3823 19 00). 2.2 The Refined Palm Oil (HSN 1511 90 10) is then further processed in Fractionation Plant (which includes Crystallization and Filtration process) from which following two products are generated - (a) Palmolein Oil (b) RBD (Refined Bleached Deodorised) Palm Stearin. 3. The app....
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....nd 3-piece detachable type of rubber membrane with individual squeezing air / hose connection, closed delivery, hydraulic press closing type. The filtrate, i.e. olein passes through a filter cloth of suitable porosity, and flows along the corrugated channels of a rubber membrane, which wraps behind the filter cloth, and guide the olein out of the filter frame into a channel for closed discharge into a olein receiver tank. When the chambers are filled with cake, i.e. stearin, the feed is topped and high pressure fluid (usually compressed air) is admitted behind the membrane which being elastic, presses or squeezes the stearin mass in the chamber free of liquid olein entrained within the inter-spaces of the crystals out into the discharge cha....
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....where a new tariff was created under HSN 1511 90 30 for 'Refined Bleached Deodorised Palm Stearin' to harmonise the Customs Tariff in accordance with WCO classification decision [clause No. 109(b) of the Finance Act, 2017]. The applicant submitted that with this amendment, there is lack of clarity as to whether Palm Stearin would fall under 1511 9030 or 3823 1112. 6.3 The applicant also submitted that in the Notification No. 18/2017-Customs, dated 9th May, 2017, RBD Palm Stearin was introduced by Customs in Chapter 1511. It is submitted that the Central Excise Tariff also includes RBD Palm Stearin both in Chapter 1511 and 3823 and as per the GST Tariff, the product RBD Palm Stearin also falls in both Chapter 1511 and Chapter 3823. 6.4....
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....sp; ...... (iii) "Tariff item", "sub-heading" "heading" and "Chapter" shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification." 11.1 The relevant entries for Chapter Heading 1511 and 3823 of the First Schedule to the Customs Tariff Act, 1975, prior to enactment of the Finance Act, 2017 were as under- HS Code Description of goods Unit (1....
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....30 --- Refined bleached deodorized palm stearin Kg. 100% 90% (4) in Chapter 38, -- (a) in heading 3823, for sub-heading 3823 11 and tariff items 3823 11 11 to 3823 11 90 and the entries relating thereto, the following shall be substituted, namely:-- 3823 11 00 --- Stearic acid Kg. 30% - 11.3 In the Annexure IV (Legislative Changes), Part A (Customs), Sub-part III (Amendment in the First Schedule to Customs Tariff Act, 1975) of the D.O. F.No. 334/7/2017-TRU dated 01.02.2017 of the Joint Secretary (TRU-I), it has been mentioned as follows : S.No. Amendment Clause of the Finance Bill, 2017 1 To: (i) ......... (ii) Create n....
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....ff Item 1511 90 30 for 'Refined bleached deodorized palm stearin'. Therefore, the product 'Refined bleached deodorized palm stearin' is classifiable under Chapter Heading 1511 with Tariff Item 1511 90 30 in view of Rule 1 and Rule 3(a) of the General Rules for the Interpretation of the First Schedule to the Customs Tariff Act, 1975. 13. It is observed that CBEC Circular No. 81/2002-Customs dated 3.12.2002 was issued in the context of the then existing entries in the First Schedule to the Customs Tariff Act, 1975. Similarly, in the judgement of Hon'ble Supreme Court, in the case of Commissioner of Central Excise, Customs & Service Tax, Vishakhapatnam Vs. Jocil Ltd. [2011 (263) E.L.T. 9 (S.C.)] = 2010 (12) TMI 24 - SUPREME COURT OF INDIA, ....