TaxTMI 
TaxTMI 
2025 (4) TMI 1729
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....39; by classifying the said goods under the CTH 15159040. The appellant availed the benefit of Exemption Notification 21/2002 as amended by the notifications 48/2008 and 12/2012 cleared the goods without payment of customs duties. 2.1. During the period 21/10/2010 to 27/02/2012, the appellant imported about 104 consignments of crude rice bran oil for manufacturing edible rice bran oil packaged, by following FSSAI Act. The assessing officer assessed/reassessed the Bills of entry under CTH 1515 9091 after conducting chemical tests by the Customs laboratory (CRCL) which certified that the goods were in conformity with the Food Standard. The assessing officer extended the benefit of Notification No. 21/2002 as amended by Notification Number 48/2008 and Notification Number 12/2012. 2.2. A Show Cause Notice dated 01/02/2013 was issued to the appellant proposing to deny the benefits of the said exemption notifications on the ground that the percentage of acid content in the crude rice bran oil imported indicate that they were not 'edible oil' and hence the benefit of the exemption is not available to the said goods imported by the appellant. Accordingly, the said notice prop....
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....pose only. Hence, it is their submission that the crude oil imported for them for refining and marketing as edible oil are eligible for the benefit of the exemption provided under the Notification No. 21/2002-Cus., as amended. 3.1. The appellant has referred to the clarification issued by the Board vide Circular no. 29/97 dated 31 July 1997 wherein it has been clarified that the edible grade needed to be examined after the refining process and the oil which are used for refining and for making edible grade would qualify for the benefit of exemption notification; The Board issued another Circular 40/2001 wherein it has been clarified that so long as the imported oil is used after refining for edible purposes, it will be eligible for the benefit of the exemption notification. Thus, the appellant submits that as per the clarifications issued by the Board, the crude oil imported by them would be eligible for the benefit of the exemption Notification No. 21/2002 as amended, if it is used for edible purpose after refining. Since, in this case there is no dispute that after refining, the goods imported by them were used for edible purposes, the appellant submits that denial of exemptio....
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....2 (Sl. No. 57). For the sake of ready reference, the said entries in the exemption notifications are reproduced below: (1) (2) (3) (4) (5) (6) "33A. 1508, 1509, 1510, 1512, 1513, 1514, or 1515 All goods, crude and edible grade Nil - - 33B. 1508, 1509, 1510, 1512, 1513, 1514 or 1515 All goods, refined and edible grade 7.5% - -;" [Notification No. 21/2002-Cus. dated 01.03.2002 as amended vide Notification No. 42/2008-Cus. dated 01.03.2008] 57. 1508, 1509, 1510, 1512, 1513, 1514, or 1515 All goods, crude and edible grade Nil - - [Notification No. 12/2012 dated 17.03.2012 - replacing Notification No. 21/2002-Cus. ibid.] 6.2. A perusal of the above two entries in the exemption Notification No. 21/2002-Cus. dated 01.03.2002 clearly indicates that "crude oil of edible grade imported for the purpose of refining and make it edible are eligible for the benefit of the exemption provided under the said Notification. We observe that that there is no dispute in this case that after refining the goods imported were used fo....
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....ariff Unit) New Delhi Subject : Scope of the term 'vegetable oils of edible grade' in Sl. No. 15 to Notification 11/97-Cus. - Regarding. In terms of Sl. No. 15 to Notification No. 11/97-Cus., dated 1-3-1997 'vegetable oils (other than coconut oil, RBD palm oil, RBD palm kernel oil and palm stearin) of edible grade, in loose or bulk form' are liable to concessional duty of customs @ 20% ad valorem. Prior to 1-3-1997 these oils were liable to concessional duty in terms of Notification No. 8/95-Cus., dated 2-3-1995, and Sr. No. 7 to Notifications No. 36/96-Cus., dated 23- 7-1996. 2. A doubt has arisen regarding scope of the term 'Vegetable oils of edible grade' appearing in the said notification i.e. as to whether this term will cover only those vegetable oils which are fit for human consumption as it is imported or it will also include the vegetable oils which are not fit for human consumption at the time of import but will be fit for human consumption after further processing. 3. The matter has since been examined in consultation with the Ministry of Food, Department of Food, Directorate of Vanaspati, Vegetable Oils and Fats, Ministry of Civil Sup....
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....erm edible oil means vegetable oils and fats and includes any margarine, vanaspati, bakery shorting and fat spread as specified in the Prevention of Food Adulteration Act, 1954 and rules made thereunder for human consumption. The PFA Act, 1954 has laid down the standards of crude palm oil and prescribed the maximum limit of the acid value for crude palm oil as 10.0. 3. Considering this definition one of the food and drugs laboratory after taking samples from a consignment of the imported crude palm oil - which showed acid values varying from 13% to 18%, has opined that the samples do not conform to the standards of edible grade palm oil prescribed under PFA rules and is not edible as such. In another case, a chemical examiner relying upon the Board's 1997 Circular, even though the sample had acid values of more than 13%, took the view that it may be considered as edible oil as after processing it could be made fit for human consumption. The discussions with the officers of Department of Food and a critical look at the Board's Circular of 1997 reveals that when the question of extending concessional rate for edible oils was examined in consultation with the Ministry of ....
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....e it fit for human consumption, then the concessional rate provided under serial number 29 of the table annexed to the Notification 17/2001 may be redundant and would defeat the intention of the Government for giving the concessional duty for crude oils used for industrial purposes and not for edible purposes. 6.7. Thus, we observe that as per the clarifications issued by the Board, the crude oil imported by the appellant would be eligible for the benefit of the exemption Notification No. 21/2002-Cus. dated 01.03.2002 as amended by Notification No. 42/2008-Cus. dated 01.03.2008 and Notification No. 12/2012 dated 17.03.2012, if it is used for edible purpose after refining. Since there is no dispute in this case that after refining the goods imported by the appellant were used for edible purposes, we hold that the appellant is eligible for the benefit of the exemption as provided under Serial No.33A of the Notification No. 21/2002-Cus., as amended. Accordingly, we hold that the denial of exemption to the appellant in the impugned order is legally not sustainable and hence the demand of customs duty confirmed in the impugned order is also not sustainable. 6.8. We observe that th....
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....ry. In other words, the overall reading of [Regulation 2.2.1(19)] will clearly show that the imported Palm Oil has necessarily to be refined to conform to the Standards under Regulation 2.2.1(16) and 2.2.1(19) except with regard to Acid Value to be less than 0.5% before the same can be sold for human consumption." Taking note of the regulations and also taking note of the fact that appellants are expected to refine the oil and thereafter only release the oil into the market and therefore at the stage of import, the oil cannot be considered as a non-edible crude, Hon'ble High Court of Gujarat as well as the Hon'ble High Court of Calcutta held that exemption benefit under Notification No. 21/2002 has to be allowed. The present notification is a successor notification of the earlier notification and the conditions remain the same. At this stage the learned AR submits that the fact that it has to be refined and thereafter only it should be released and after refining itself would show that at the time of importation, the oil is not of edible crude and therefore does not become eligible for exemption. We are unable to consider this submission in view of the decision of the Hon'....
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.... DO 352/1mp/12/11 26.09.11 29.9 13 DO 353/1mp/12/11 30.09.11 22.9 14 DO 354/Imp/12/11 15.10.11 23.6 15 DO 355/1mp/12/11 17.10.11 37.4 16 DO 356/Imp/12/11 18.10.11 37.5 17 DO 357/1mp/12/11 20.10.11 36.2 18 DO 378/Imp/12/11 05.12.11 48.7 19 DO 379/Imp/12/11 07.12.11 30.3 20 DO 01/1mp/12/12 01.01.12 36.9 21 DO 02/1mp/12/12 02.01.12 58.1 22 DO 04/Imp/12/12 09.01.12 56.3 23 DO 26/1mp/12/12 26,02.12 28.0 24 DO 27/Imp/12/12 27.02.12 27.8 7.1. From the Test Report reproduced above, we observe that the report has categorically indicated that the goods imported by the appellant satisfies the Food Standard. The Ld. adjudicating authority has allowed the benefit of the exemption Notification No. 21/2002-Cus., as amended, after satisfying himself that the goods imported was of 'edible grade'. 7.2. During the course of hearing, the Ld. Authorized Representative of the Revenue submitted that the Test Reports received from CRCL in respect of 24 Bills of Entry have been tabulated in paragraph 10.6 o....