TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 1287
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....cuum. Filtered miscella is collected in the miscella tank non oily spent earth which is in P.L.F. is heated with closed & open stream upto 70/80 C temp adhier solvent vapour cooled in condenser & condensed solvent is collected in the miscella tank. Solvent free De Oil Cake are transfer to godown through conveyer where bagging are done for storage. These are our valuable additional products like De Oil Cake (DOC), Use as a Fertilizer, Cement Plant and Breaks works. Oil bearing solvent (Miscella) is sent distillation unit where solvent & oil are separated. Oil is pumped to the storage tank whereas solvent is sent to storage tank for recycling. 3. The applicant has further stated that the major inputs used in the production of castor oil [non-edible] and the rate of IGST of the said inputs, is as under viz., Sr. No. Description of the inputs HSN Rate of IGST 1 Spent earth 3802 18% 2 Hexane Solvent 2901 18% 3 Fire wood 4401 Nil 4. The applicant thereafter states the following, * that their input and output fall in different chapters; * that the rate of GST on the inputs used and their output is different; * that in terms of notification No. 9/2022-CT (Rate) date....
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....the submissions made during the course of personal hearing. We have also considered the issue involved, the relevant facts & the applicant's submission/interpretation of law in respect of question on which the advance ruling is sought. 9. Before dwelling on to the question on which the applicant has sought a ruling, it would be prudent to reproduce the relevant tariff headings, explanatory notes, exemption notification, for ease of understanding viz., [relevant extracts] CUSTOMS TARIFF ACT, 1975 * Chapter 15 1515 OTHER FIXED VEGETABLE OR MICROBIAL FATS AND OILS (INCLUDING JOJOBA OIL) AND THEIR FRACTIONS, WHETHER OR NOT REFINED, BUT NOT CHEMICALLY MODIFIED 1515 30 - Castor oil and its fractions: 1515 30 10 --- Edible grade 1515 30 90 --- Other 1516 ANIMAL, VEGETABLE OR MICROBIAL FATS AND OILS AND THEIR FRACTIONS, PARTLY OR WHOLLY HYDROGENATED, INTER-ESTERIFIED, RE-ESTERIFIED OR ELAIDINISED, WHETHER OR NOT REFINED, BUT NOT FURTHER PREPARED 1517 MARGARINE; EDIBLE MIXTURE OR PREPARATIONS OF ANIMAL, VEGETABLE OR MI CROBIAL FATS OR OILS OR OF FRACTIONS OF DIFFERENT FATS OR OILS OF THIS CHAPTER, OTHER THAN EDIBLE FATS AND OIL S OR THEIR FRACTION....
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....y undertaking the solvent extraction process, is extracting the castor oil from spent earth. Thus, the spent earth oil recovered from Spent Earth can as well be considered as 'vegetable oil" as it is nothing but the residual vegetable oil trapped in the spent bleaching earth. 13. Now, as far as HSN 1515 goes, we find that it covers other fixed vegetable or microbial fats and oils and their fractions; that these are generally, oils which are obtained from one or more plant parts. Since, in this case the castor oil [non-edible grade] is obtained from spent earth it cannot be classified under HSN 1515. 14. As far as HSN 1516 goes, we find that it covers animal, vegetable or microbial fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared. Since, in this case the castor oil [non-edible grade] is obtained from spent earth and as it has not undergone the process mentioned above, it would not merit classification under HSN 1516. 15. On going through HSN 1517, we find that it covers margarine; edible mixture or preparations of animal, vegetable or microbial fats or oils or of frac....
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....e chemically modified, excluding those of heading 15.16. This part covers animal or vegetable fats and oils and their fractions which have been subjected to processes which modify their chemical structure thereby improving their viscosity, drying power (i.e., the property of absorbing oxygen when exposed to the air and forming elastic films) or modifying their other properties, provided they retain their original fundamental structure and are not more specifically covered elsewhere, e.g. : (1) Boiled or oxidised oils are obtained by heating oils, generally with the addition of small quantities of oxidising agents. These oils are used in the paint and varnish industry. (2) Blown oils are partially oxidised and polymerised oils produced by blowing air through the oil, with application of heat. They are used for the manufacture of insulating varnishes, imitation leather and, when mixed with mineral oils, lubricating preparations (compound oils). Linoxyn, a semi-solid rubbery product, which is a highly oxidised linseed oil used in the manufacture of linoleum is also included in this heading. (3) Dehydrated castor oil is obtained by dehydrating castor oil in the presence of a ....
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....ot elsewhere specified or included. This part covers, inter alia, used deep-frying oil containing, for example, rape oil, soya-bean oil and a small quantity of animal fat, for use in the preparation of animal feeds. The heading also includes hydrogenated, inter-esterified, re-esterified or elaidinised fats and oils or their fractions, where modification involves more than one fat or oil. The heading does not include : (a) Fats or oils merely denatured (see Note 3 to this Chapter). (b) Hydrogenated, inter-esterified, re-esterified or elaidinised fats and oils or their fractions, where modification involves only one fat or oil (heading 15.16). (c) Preparations of a kind used in animal feeding (heading 23.09). (d) Sulphonated oils (i.e., oils treated with sulphuric acid) (heading 34.02). 19. Moving back to the notification in question, we find that while serial no. 90 [schedule-I] deals with vegetable fats and oils and their fractions, boiled, oxidised, dehydrated, sulphurised, blown, polymerised by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516, the other entry relating to HSN 1518 i.e. serial no. 27 [schedule-II] deals....