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Commissioner of Customs, Visakhapatnam-II Versus M/s Arani Agro Oil Industries Ltd

2015 (10) TMI 2188 - CESTAT BANGALORE

Classification of goods – Crude Palmolein – Assessee classified goods under the category of edible grade with sub-heading No. 15119090 chargeable to BCD 70% - Assistant Commissioner classified the goods as Crude Palmolein (other than Edible Grade) under sub-heading 15111000 chargeable to BCD @100%, SAD 4% at Tariff rate of $532 Pmt – Held That:- Commissioner (Appeals) has granted relief to assessee by finding faults with the order of the Assistant Commissioner and referring to certain lacuna in .....

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Arya, Technical Member Mr. N. Jagdish, A.R. : For the Petitioner Ms. Neethu, Advocate : For the Respondent ORDER Per Archana Wadhwa Being aggrieved with the order passed by the Commissioner (Appeals), Revenue has filed the present appeal. We have heard Mr. N. Jagdish, learned A.R. appearing for the Revenue and Ms. Neethu, learned advocate appearing for the respondents. 2. As per facts on records, the respondents, M/s Arani Agro Oil Industries Ltd. have imported 1492.308 Mt. of Crude Palmolein (e .....

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acid value was 9.83 and a sample was also forwarded to the Central Food Laboratory (CFL), Calcutta for further analyses and the Director of CFL vide letter dated 18.11.2003 opined that samples of Crude Palmolein was adulterated. Meanwhile, appellant approached Hon ble AP High Court and in terms of directive of Honble AP High Court in the Writ petition No. 24003/2003 dated 09.12.2003, the Assistant Commissioner allowed clearance of said goods provisionally on payment of duty vide Ex-bond Bill wh .....

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al Carotenoid Concentration ranging between 363 to 422. Accordingly, observing due principles of natural justice and in consideration of the sample reports furnished by the PHO and Chemical Examiner, the Assistant Commissioner, vide Order No. 5/2008 dated 29.5.2008, finalized assessment by classifying goods as Crude Palmolein (other than Edible Grade) under 15111000 under CTA 75 and demanded duty-BCD @100%, SAD 4% at Tariff rate of $532 Pmt. 5. Aggrieved by the Order-in-Original, the appellant p .....

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r amounts to selective reliance; (iv) the adjudicating authority has not given due consideration to Notification No. 40/2001-Cus dated 13.7.2001 and (v) the proviso to Section 2(m) of the PFA Act 1954 should have been given due consideration. Accordingly, he allowed the appeal by setting aside the order of adjudication. 6. Being aggrieved with the said order of the Commissioner (Appeals), the Revenue filed present appeal on the following grounds : Upon examination of the order in appeal, it is f .....

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to protect the health of consumers and accordingly, the Govt. of India prescribed relevant standard in respect of such edible oils by specifying the range of carotenoid concentration in terms of composition characteristics 2.6 of CODEX STANDARD 210-1999 for named vegetable oils as (i) carotenoids treated as precursors of Vitamin A; (ii) studies have shown that carotenes also possess the protective properties against various types of Cancer and (iii) the presence of Carotenoids offer oxidative p .....

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the Circular No. 85/2003-Cus, dt. 24.09.2003. (c) Therefore, the standards prescribed vide a Notification under Customs Act 1962 are equally applicable to the relevant chapters of Customs Tariff Act '75 by virtue of the Sections 2, 3, 4 & 13 of the Customs Tariff Act 1975 since the said sections made the Tariff Act applicable in tandem with the relevant provisions of the Customs Act 1962 and in fact the concessional rate applicable to goods under import are made effective by the Notific .....

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oric of wording in pursuance of the said Order. Hence, the contention lacks clarity and has no merits. (e) The case law [ 1999 (105) ELT 494 (Trib)] relied upon by the Appellate authority dealt with the interpretation as to classification of Copper plates, sheets etc including the Alloys vis a vis, predominant metal of such alloys in terms of chapter heading & sub-heading and not as per common trade practice. Whereas, the instant case deals with the classification of goods on the basis of pr .....

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ise, the reports of both the Port Health Officer and the Central Food Laboratory-Calcutta stand to reason in terms of the supplementary note to the Chapter 15 read with PFA Rules, 1955. As such, the evidence provided by them is proper and relevant to the instant proceedings. 3. The PFA Act 1954 and rules made thereunder prescribed standards as to Adulteration or otherwise of the item A 17.20 under Food as per of Appendix B and the same is determined in the reports of both the PHO & the CFL. .....

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under sanction of Law only being prescribed under the statutory authority of both the PFA Act 1954 and the Customs Tariff Act '75/Customs Act '62 and hence it is very much relevant and these facts were not considered properly by the Appellate authority. 4. Vide Para 2 of the Circular No. 40/2001-Cus, dt. 13.07.2001, as per Edible Oils Packaging (Regulation) Order 1998 of Ministry of Food and Consumer Affairs (Dept., of Sugar & Edible Oils), it was spelt out that the term "edible .....

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shall be below 06 with Carotenoid concentration ranging between 500-2500 mg/Kg. Thus, the classification of carried out by the Assistant Commissioner is very much in order and accordingly, the goods are to be tested for the standards to be confirmed at the time of importation only and not after their importation for supply to human consumption after refining, since the same is not contemplated under Customs Act 1962. 5. The standards at A 17.15 of PFA Rules 1954 are applicable for the goods of e .....

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rd and conforming to the prescribed range of Carotenoid concentration. 6. The proviso to Section 2 (m) of the PFA Act 1954 is no way relevant as it was not found on any sound reasoning and the Commissioner (A) already held the contention of party "that the acid value is bound to increase with time is not technically correct and legally not sustainable", in his Orders-in Appeal Nos. 1/2007 V-II)-Cus & 2/2007 (V-II) Cus, both dt. 23.02.2007 relating to M/s. Kedia Overseas Ltd., and M .....

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