Sankhla Industries Vs Commissioner of Customs (CESTAT Chennai)
CESTAT Chennai held that Epoxidised Soya Bean Oil is classifiable under tariff heading 1518 0039 of the Customs Tariff Act, 1985. Accordingly, duty demand of normal period with appropriate interest confirmed.
Facts- Based on intelligence gathered by DRI, Trivandrum Regional Unit, it appeared that the appellant had imported ‘Epoxidised Soya Bean Oil” (ESBO) vide 16 bills of entry (BOE) during the period from 17.07.2017 to 22.09.2020, which is a chemically modified soya bean oil by classifying it under CTH 3812 3990 instead of CTH 1518 0039 and clearing them at a lower rate of duty.
Show Cause Notice dated 26.06.2022 was issued proposing to reclassify the impugned goods imported under the said 15 BoE’s under CTH 15180039 and deny the benefit of availment of BCD @7.5%vide Sl. No. 262 of Notification No. 50/2017 dated 30.6.2017. After due process of law, the Ld. Adjudicating Authority confirmed the demand as proposed in the Show Cause Notice and also imposed fine and penalties. Hence this appeal.
Conclusion- Held that the note 6(c) fits the impugned goods squarely and the impugned goods hence are covered under CTH 1518. While plasticisers, are also covered by heading 3812 it pertains to the category of compound plasticisers. The HSN notes makes it clear that ESBO fall under CTH 1518 which is the more specific heading hence as per Rule 3 (a) of RIT the goods have been classified correctly. The classification of goods as per the impugned order is hence upheld. Thus, we uphold the classification of the goods under tariff heading 1518 0039 of Customs Tariff Act 1985, as determined in the impugned order, but limit the demand of duty if any to the normal period with appropriate interest. We set aside the confiscation and accordingly the fine and penalty imposed. The appeal is thus partly allowed.
