In re M/s Fermenta Biotech Ltd. (CAAR Mumbai)
CAAR held that Light Feed Oil or Distilled Fatty Acid and Heavy Feed Oil or Fatty Substance Mixture merit classification under sub-headings 15042090 and 15161000, respectively, of the first schedule to the Customs Tariff Act, 1975. HFO, falling under sub-heading 15161000 is eligible for concessional rate of duty @ 30% adv. having been covered under sr.no. 75 of the table appended to the notification no. 50/2017 Cus., dated 30.06.2017, as amended.
FULL TEXT OF ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
M/s. Fermenta Biotech Ltd. (hereinafter, the applicant) situated at A-1501, Thane One, DIL Complex, Ghodbunder Road, Thane West, PIN- 400610 and having the IEC No. 0388076381, intends to import two different products, namely, Light Feed Oil or Distilled Fatty Acid and Heavy Feed Oil or Fatty Substance Mixture from Harting SA, Chile and are seeking classification of the same, as well as applicability of notification, if any, issued under sub-section (1) of section 25 of the Customs Act, 1962.
2. The applicant has made the following submissions along with the report of Harting SA, Chile:-
a) The applicant along with Harting S.A. are jointly evaluating the implementation of the Harticohl project in India,
b) Light Feed Oil (LFO) and Heavy Feed Oil (HFO) are both by-products from the Omega 3 oil industry and are major raw materials for the Harticohl project,
c) The raw materials of the Harticohl project comprises of by-product residues from the industrial Omega 3 oil refining process. LFO is produced as a by-product residue from the industrial oil refining process by hydrolytic splitting of oils and distillation. LFO is obtained as distilled fatty acids,
d) LFO is mainly composed of a mixture of monocarboxylic fatty acids and its composition is as
under: –
a. Distilled fatty acids: Industrial monocarboxylic fatty acids
b. Mono-ethyl esters of long chain fatty acids
c. Cholesterol
Percentage range of constituents of LFO: –
