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2019 (2) TMI 1236 - AT - Central ExciseChange of classification of he product - 12 Hydroxy Stearic Acid - Ricinoleic Acid - change of classification from Chapter heading 2915 and 2916 to Chapter heading 3823 - Held that:- The classification of products depend on the purity. For classification under Chapter heading 29, the product has to be “separate chemically defined organic compound”. The perusal of the test report shows that the sample consists of Ricinoleic Acid (by GC)= 85.70%, Linoleic Acid (by GC)=4.39%, Oleic Acid (by GC)=3.00%, Palmitic Acid (by GC)= 1.10% and Stearic Acid(by GC) =1.66%. Thus the samples contain total of 95.85% fatty acid. Similarly the other sample consists of 12-Hydroxy Stearic Acid(by GC)=85.20%, 12-Keto Stearic Acid (by GC)=1.48%, Stearic Acid (by GC) = 10.40% and Palmitic Acid (by GC)=1.20% i.e. it contains of total of 98.28% of fatty acid - reliance is placed on Chapter note 1(a) which clearly holds that separately defined organic compounds are to be decided in Chapter 29 even if they contains impurities. The treatment to be given to mixtures of isomers is clarified in Chapter note 1(b). In the instant case, the mixtures is not as isomers and are different acids and not isomers. In these circumstances, the criteria for classification would be the percentage of “Ricinoleic Acid” and “12-Hydroxy Stearic Acid” - If we apply the exclusion clause to Chapter heading 2915 and 2916 to the above facts, it transpires that the product containing less than 90% of “Ricinoleic Acid” or “12-Hydroxy Stearic Acid” would be classifiable under Chapter 3823 and not under Chapter 2915 or 2916. Thus, if the concentration of “12-Hydroxy Stearic Acid” is above 90%, the product will be classifiable under Chapter 29, otherwise not - appeal allowed - decided in favor of appellant.
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