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2013 (9) TMI 379 - AT - CustomsImport of Crude Palm Stearin - Concessional Rate of Duty - Notification No. 21/2002-Cus – Rule 4 of Customs Rules 1996 - The appellant were registered for import of crude palm stearin oil at concessional rate of customs duty for its use in the manufacture of industrial fatty acids - Revenue cancelled the bond executed and directed the appellant not to import crude palm stearin under Rule 4 of the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996 – Held that:- The appellant-assessee was prima facie entitled for the benefit of concessional rate of duty under serial No. 30(A) of Notification No. 21/2002 - the bond executed by the appellant before the Assistant Commissioner was valid and it cannot be cancelled without any rationale basis. Following Superintendent of Central Excise and Others v. VAC Met Corpn. Pvt. Ltd. [1985 (8) TMI 71 - SUPREME COURT OF INDIA ] - It was evident that crude palm stearin used in the manufacture of soaps/fatty acids and fatty alcohols was eligible for a concessional rate of duty at 10% ad valorem subject to the condition that the importer follows the procedure set out in Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996 - Stearic acid manufactured by the appellant was also a fatty acid even though it may be more appropriately classifiable as an industrial fatty acid - Entry 30(C) related to all goods except crude palm oil which was used in the manufacture of soaps, industrial fatty acids and fatty alcohol - The entry was more general and applied to all variety of goods including that of crude palm stearin. Waiver of Pre-deposit - Prima facie the appellant had made out a strong case in their favour - the stay application preferred by the appellant was allowed and direct the lower authorities to continue to allow the appellant to import crude palm stearin for manufacture of industrial fatty acids in terms of serial No. 30(A) of the table annexed to Notification No. 21/2002-Cus., under the bond dated – Decided in favour of Assessee.
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