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2016 (11) TMI 848 - CESTAT MUMBAIBenefit of exemption notification no. 26/03-Cus dated 1st March 2003 - caroteniod content in the imported ‘crude palm oil’ - benefit of concessional rate of duty in terms of sl. no. 34. of customs notification no. 26/03-Cus dated 1st March 2003 - Held that: - ‘Crude palm oil’ does not find ready use and must be subject to an eponymous process of refining, bleaching and deodorizing as a pre-requirement. This process also eliminates the carotenoid presence in the crude oil. It would appear that the concessional rate is intended to be accorded to the crude form to incentivise value addition in the domestic territory. The caroteniod content is, therefore, a reasonable test for ascertaining the form in which ‘palm oil’ is imported. No evidence has been brought on record to show that it was, indeed, refined bleached deodorized palm oil’ that was imported. The reduction of carotenoid content, such as it is, owing to efflux of time has not altered the form of imported ‘palm oil’ to refined and the process of refining, bleaching and deoderizing after import is unavoidable. To the extent that there is no evidence that appellant did not have to carry out the refining process before using it in the manufacture of their baked products, we see no reason for denial of the concessional rate of duty - Benefit of doubt is accorded to the test results at load port owing to lack of credibility attributable to the report of the Customs laboratory and, accepting that the imports were of ‘crude palm oil’, we allow the benefit of exemption notification no. 26/03-Cus dated 1st March 2003 - appeal allowed - decided in favor of appellant.
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