TMI Blog2023 (4) TMI 697X X X X Extracts X X X X X X X X Extracts X X X X ..... per the end use, unless it is specifically mentioned so. Therefore, as per the provisions of Chapter 15 of the CTA, RBD Palmolein Oil is covered under tariff heading 1511 90 20. It is found that in a AAR ruling in the case of M/s Sri Kanyakaparameshwari Oil Mills [[ 2019 (7) TMI 619 - AUTHORITY FOR ADVANCE RULING, KARNATAKA] ] it was held that Deepam Oil which was an inedible mixture of Gingelly oil, Palmolein oil and rice bran oil intended to use as lighting lamp for God, was classifiable under Chapter Heading 1518. As indicated in Para 5.4, Chapter Heading 1518 provides for classification of Inedible Mixtures or preparations of vegetable oils or of fractions - But in the instant case, the Mahara Jyothi oil is neither a mixture of one or more oils nor is it inedible. It is an edible RBD Palmolein and hence, the ruling of AAR in the above cited case is distinguishable. In as much as the said Mahara Jyothi oil, as per the submissions of the applicant, is edible and is RBD Palmolein without any additives or mixture of other oils, it is rightly classifiable under 1511 90 20. - SHRI R. GOPALSAMY, I.R.S., AND TMT. N.USHA, MEMBER, PROCEEDINGS OF THE AUTHORITY FOR ADVANCE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2.0. The Applicant has stated that they are a registered Private Limited Company having its factory at Kodungaiyur and Gummidipoondi in Tamilnadu engaged in the process of refining, bleaching and de-odorising the Crude Palm oil and Sunflower oil falling under Chapter 15. The Applicant has stated that they are engaged in the processing and refining of healthy branded edible oils for more than three decades. Apart from manufacturing and marketing above edible oils, the Applicant makes a preparation which is mixture of edible oils viz Rice bran oil, Coconut oil. lllupai oil, castor oil and Gingelly oil with perfumery material and market the same as their new commercial premium product with trade name as Deepa Jyothi Lamp Oil which carries a levy of tax at 12% in full under tariff heading 15.18. 2.1 The Applicant has stated that as part of their business, they have now proposed to introduce one of their manufactured product viz RBD Palmolein (Refined bleached deodorized palmolein) as lamp oil which is of edible grade as such without being mixed with any other oils and perfumery material. It is used for lamp in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e hearing and reiterated the submissions made through email. They submitted that the lamp oil is also of edible nature and that for marketing purposes they have labelled it as lamp oil. Hence, they submitted that the rate of tax should be as applicable to edible oil only. The Member asked the AR to elaborate on the difference between lamp oil and edible oil. The AR replied that both are exactly the same and this can also be used for cooking. The Member questioned on the cost of products and the difference between the costs of both. The AR replied that the edible oil ROOBINI is priced at Rs 98.50/500ml and the lamp oil Rs.84/500 ml. While being asked about the reasons for difference in price, the AR replied that branding and intended use are the reasons. They were asked to furnish the following documents for both the products:- (i) Process of manufacture of RBD Palmolien with pictures of various stages. (ii) FSSAI Certification for the RBD Palmolien (iii) Package details with the package pouch/covers (iv) Substantiate the infrastructure available for manufacturing the RBD Palmolien. (v) Invoices 3.2 The applicant vide their letter dated 09.05.2022 submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , in order to recover residual oil in the bleaching earth. This oil from the exhaust steam is separated in a cyclone separator. After the filtration, the oil is passed through pulse tube filter through tank in series with one of two alternatively working security filters and it is sent to the BOT cum Dearetor for deodorization. CONTINUOUS DEODORISATION SECTION The oil from Deareator is pumped by for further heating in two steps, first by deodorized oil in regenerative heat Economizer and then by High Pressure steam in Vacuum final oil Heater to the required deodorization temperature. The hot oil fed into the Stripper flows through the liquid distributor over a specially designed packing in the form of a thin film continuously under vacuum. The separate holding vessel Deodoriser provided at the bottom of the stripper. The holding vessel and stripper are equipped with steam sparging system to ensure efficient stripping of volatile matter. As the oil passed through the Deodorizer, fatty acids, aldehydes, ketones and other thermal decomposed materials, which cause bad taste and smell, are vapourised and carried off with the stripping steam. The deodorized oil is discharged by a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Determination of correct classification of lamp oil. As the question is to determine the nature of supply, which is within the ambit of the authority under section 97 (2) (g) of the CGST Act, the same is taken up for decision. 5.0 The short question that arises is the classification of Oil which is marketed by the applicant as Mahara Jyothi (lamp oil). 5.1 Explanation (iii) (iv) of Notification No. 1/2017-Integrated Tax (Rate), dt. 28-6-2017 provides as follows:- (iii) Tariff item , sub-heading heading and Chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of1975). (iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. 5.2 Chapter 15 of the First Schedule to the Customs Tariff Act, 1975 deals with Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes. The relevant portions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a process called fractionation. The Applicant has stated that they have proposed to market one of their RBD Palmolein which is of edible grade without changing its basic and essential character as Mahara Jyothi, which is intended to be introduced as lamp oil. Applicant had further stated that the process of manufacture of Mahara Jyothi is the same as the process of manufacture of their edible RBD Palmolein which is branded as Roobini . No additives are added for Mahara Jyothi and the packing of Mahara Jyothi is affixed with FSSAI license number used for Roobini Refined Palmolein as the manufacturing process is same for both the products. Only difference is that Roobini edible RBD Palmolein is marketed as cooking oil while Mahara Jyothi edible RBD Palmolein is marketed as lamp oil. But, in Mahara Jyothi, no perfumes or other additives are added and Mahara Jyothi continues to be edible RBD Palmolein. From the photograph submitted by the applicant, it is observed that one side of pouch of Mahara Jyothi has the words Refined Palmolein and Edible Vegetable Oil with the description of contents and FSSAI license number. The other side contains the pictoral representation of Mahara ..... X X X X Extracts X X X X X X X X Extracts X X X X
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