TaxTMI 
TaxTMI 
2019 (10) TMI 426
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....er confiscation of the imported goods under Section 111(m) of the Act as proposed. I also do not impose any penalty on the importer under Section 112(a) of the Act." 2.1 Appellants had imported CAXESTER MCT 8040 (Medium Chain Triglyceride 60/40) and IMEX 3/9280 (Caprylic Capriate Triglyceride) by classifying the same under CTH 29159090 and availing the benefit of exemption under Notification No 12/2012-Cus at Sl No 165. 2.2 These goods as per the revenue where correctly classifiable under heading No 15162091. After investigations a show cause notice dated 31.05.2018 was issued to the appellants asking them to show cause as to why; • The goods cleared vide past bills of entry as mentioned in para 7 should not be classified under CTH 15162091; • Duty short paid amounting to Rs. 54,56,158/- in respect of the past clearances of the subject goods (details as per para 7 of this notice), should not be demanded and recovered from him under the provisions of Section 28(1) of the Customs Act, 1962 and amount of Rs. 53,38,914?- paid vide challan no HC-288 dated 23rd April 2018 should not be appropriated against the said duty demanded. • Interest sh....
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....ter formed by reaction of Caprylic Acid of Heading 2915 and Capric Acid of Heading 2915 with Glycerol of heading 2905,it will fall under Chapter 29 only. • Even Chapter Note 1(c) to Chapter 15 excludes "fatty acids". • It is settled principle as per the decision of Hon'ble Apex Court in case of Jocil Ltd [2011 (263) ELT 9 (SC)} and Board Circular No 574/11/2001-CX dated 22.02.2001 date specific tariff entry shall prevail over the general entry. • Customs Tariff of Malaysia from where the goods have been imported specifically mentions Caprylic Capric Triglycerides under Tariff Heading 2915909000. • Reliance placed by the Commissioner on the U S Customs, Kenya Customs rulings classifying the said goods under chapter 15, is totally misplaced. These ruling do not have any binding effect. • The Commissioner had passed the order contrary to decisions of Apex Court in case of Garware Nylons Ltd {1996 (87) ELT 12 (SC)], Nanya Imports & Exports Enterprises [2006 (197) ELT 154 (SC)] HPL Chemicals Ltd [2006 (197) ELT 324 (SC)]. • The Commissioner erred in proceeding on the basis that the process undertaken in the ma....
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....ch its ambit animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, interesterified, re-esterified or elaidnised, whether or not refined, but not further prepared. The 6 digit entry 151620 includes, within its ambit, vegetable fats and oil and their fractions. The commodities included under this entry, include cotton seed oil (edible grade/other), ground nut oil (edible grade/other), hydrogenated castor oil, opal wax (edible grade/other), and a residuary entry for edible grade (15162091), and one for other (12162299). 9. According to the Explanatory Notes to the Harmonised Commodity Description and coding System, the heading 15,16 would cover, inter alia, re-esterified and fats and oils (also called esterified fats and oil ) which are triglycerides obtained by direct synthesis from glycerol wit mixtures of free fatty acids or acid oils from refine, even if they have a waxy character and even if they have been subsequently deodorized or subjected to similar refining processes, and whether or not they can be used directly as food. Exclusions to the heading 15.16 are described as hydrogenated etc fats and oils and their fractions which have unde....
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....eriod of time of the customs authorities of the united states of America to hold that Caprylic/Capric Triglycerides (MCTs) are correctly classifiable under heading 15.16 The show cause notice also refers to a Kenya customs ruling vide which the product in question has been placed has been placed exclusively under heading 15.16While cognizant of the importer's argument that the ruling s of US/Kenya customs have no legal force, the persuasive value of such independent rulings need no emphasis, in so far as they clarify the widely followed international practices. The importer has urged to apply the classification adopted by the Malaysian customs authorities, without providing any documentary evidence from Malaysian customs in their support. 11. Medium Chain Triglycerides, obtained by the direct synthesis of glycerol (from vegetable oil sources) or free fatty acids (from coconut or palm kernel oil) are triglycerides whose fatty acids have an aliphatic tail of 6-12 carbon atoms. The fatty acids found in MCTs are called medium chain fatty acids (MCFAs). Like all triglycerides, MCTs are composed of a glycerol backbone and three fatty acids. In the case of MCTs, 2 or 3 of the fat....
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....an oily liquid, and is sometimes mistakenly referred to as fractionated coconut oil. (https://www.truthinaging.com/ ingredients/ capryliccapric-triglycerides) • Caprylic / capric triglyceride is an oily liquid made from palm kernel or coconut oil. It is a mixed ester composed of caprylic and capric fatty acids attached to a glycerin backbone. Caprylic/capric triglycerides are sometimes erroneously referred to as fractionated coconut oil, which is similar in composition but typically refers to coconut oil that has had its longer chain triglycerides removed. Chemically speaking, fats and oils are made up mostly of triglycerides whose fatty acids are chains ranging from 6-12 carbon atoms, in this case the ester is comprised of capric (10 carbon atoms) and caprylic (8 carbon atoms). (http://tomsofmaine.com/ourspromise/ ingredients/capr ic -triglycerides) • Description: Lipid (triester) composed of glycerin, caprylic & capric fatty acids. It is based on saturated even-numbered, unbranched natural fatty acids of vegetable origin. Please note that triglyceride is not the same as fractionated coconut oil. Triglyceride is a special esterification of coconut oil usi....
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....still present on the skin but not oily. These are just the esthetic properties. When it comes down to chemical performance the Caprylic Capric Triglycerides are a suitable oil replacement, when you need to use it with emulsifiers that are intolerant of carrier oils, where the Fractionated Coconut Oil is not. Ingredients To Die For offers Fractionated Coconut Oil as well, because it has value when you're looking for it's particular attributes as a vegetable oil, just not as a substitute for carrier oils, for oily skin, for sensitive skin, or oil free product claims and not as a substitute for Caprylic Capric Triglycerides. Caprylic Capric Triglycerides are produced by the esterification of glycerol (plant sugars) with mixtures of caprylic (C:8) and capric (C:10) fatty acids from coconut or palm kernel oils. The special combination, and esterification, are responsible for the silky oil feel. This is a specialized process used to achieve the skin benefits of the specific fatty acid esters that also results in superior oxidative stability, low color, and odor, as it is then further refined to remove residual fatty acids resulting in a pure ester, with a silky oil feel,....