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2015 (12) TMI 1443 - AT - Central ExciseClassification of “Primosa” and “Simrose” - Medicaments or fixed vegetable oils - Classification under Sub-heading No. 15159091 or under Sub-heading No. 30049069 - enhancement of penalty - Held that:- tribunal in appellant’s own case held that the “Primosa” and “Simrose” which are encapsulated fixed vegetable oil,classifiable under Heading No. 15.03 of CETA as fixed vegetable oil. In that case, the Revenue contended that it would be classifiable under Sub-heading No. 2108.99 of CETA as “Dietary Food Supplement”. - It is evident from record that EPO is a fixed oil obtained from the seeds of plant containing Linolenic Acid with some Gamolenic Acid. It is encapsulated i.e. packed in small capsules in the appellants premises. It is not chemically modified. The Fatty acids contained in EPO is natural ingredient. There is no addition of fatty acid under Section VI of CETA. As per Chapter Note I (e) of Chapter 15 of CETA, fatty acid of Section VI of CETA would not cover in Chapter 15. Section VI of CETA covers “Products of Chemical or allied industries.” In the present case, EPO is edible grade oils and sold as EPO in capsules with the name of “Primosa” and “Simrose.” We find that the similar issue was raised before the Tribunal in the case of M/s. Supreme Enterprises (2015 (2) TMI 954 - CESTAT MUMBAI). This product is of Amazon origin and inca inchi oil is a natural oil extracted from the seeds of the Inca Inchi tree. The oil contains natural vitamins and antioxidants (Omega 3) and has not been chemically modified at all. Revenue contended that the product is claimed to have properties of preventing blood clotting triglycerol blood sugar and so on. The Tribunal held that impugned product merits classification in under Sub-heading No. 1515.90 of CTA. In the present case, it should be kept in mind that the Customs Authorities classified EPO under Sub-heading No. 1515 of CTA and the dispute was raised by Central Excise Authorities - products “Primosa” and “Simrose” would be classifiable under Heading No. 15159091 of CETA and not under sub-heading No. 30049069 of CETA and the demand of duty alongwith interest and penalty cannot be sustained. The impugned orders are set-aside - Decided in favour of assessee.
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