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CCE &ST, Indore Versus M/s Sonic Biochem Extractions Limited

2016 (8) TMI 873 - CESTAT NEW DELHI

Classification of soyabean oil – by-product in the course of manufacture of lecithin – SEZ unit - classified under Customs Tariff heading 15079090 as other than crude oil - classified under 15071000 as crude oil, whether or not degummed – Held that: - the essence of the dispute is that the soya oil emerging as a by-product continues to be a crude soya oil even though it has undergone many chemical process during the course of manufacture of lecithin powder. Admittedly, it is not of edible grade. .....

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ed – decided against Revenue. - C/3434/2012 & C/Cross 55351/2013 - Final Order No. 52719/2016 - Dated:- 1-8-2016 - Dr. Satish Chandra, President and Mr. B. Ravichandran, Member (Technical) Shri Govind Dixit, DR for the for the appellant Shri Manish Saharan, Advocate for the Respondent ORDER The appeal Commissioner appeal is the correct of manufacture of Commissioner (Appeals), Indore. The dispute involved in the present appeal is the correct classification of soyabean oil emerging in the cou .....

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the respondent claimed classification under 15071000 as crude oil, whether or not degummed. 3. We have heard both the sides and perused the appeal records, more specifically the flow chart of manufacture and manufacturing process as admitted in the earlier proceedings against the respondent. 4. The tariff heading 1507 is reproduced as below: 15071000 - Crude oil, whether or not degummed 150790 - Other 15079010 - Edible grade 15079090 - Other 5. In the impugned order the Id. Commissioner (Appeal .....

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manufacturing process of lecithin powder and the nature of emerging by-product namely soya crude oil. 6. In the appeal, the Revenue contended that the product emerging is not of edible grade as admitted by the respondent. The lecithin liquid which is the main raw material in the manufacturing process is itself a fraction of soyabean oil. The lecithin liquid with the help of Acetone was put to further process wherein the impugned goods soya oil arises as a by-product. The respondent are clearing .....

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l along clearing the goods as soya crude oil from the date of inception classifying the same under CTH 15071000. Regarding the difference in price when compared to other unit they have stated that M/S Bergwerff Organic are manufacturing solvent extracted soyabean oil out of soyabean seeds whereas the respondent is manufacturing crude soyabean oil out of lecithin liquid. There is no comparison of the emerging products as the raw material and process are different, therefore, the pricing will be d .....

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will fall under 15079090 as product other than crude oil; other than edible grade. We find the apparent emphasis by the Revenue is that since the product is not edible grade the residual heading of -other will be attracted. We find that the claim of the respondent was subject matter of dispute earlier also. The product was subjected to chemical test and detailed examination of the classification was made by the department. In this connection, it is pertinent to reproduce the findings of the orig .....

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ained is put to suction under vacuum. Again fresh acetone is added and distilled. This process is carried out for 5 -6 times with stirring. Semi-liquid material is obtained which is a mixture of acetone and crude oil and is subjected to filtration and then decanted. It is then distilled to separate solvent (Acetone) and soya crude oil which still contains some quantity of acetone. Crude oil containing some acetone quantity so obtained is further distilled at different temperature to get crude oi .....

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