Cus - Crude Palm Kernel oil which requires further refining before usage may be classified as intermediate & covered by DFRC licence - DGFT has clarified that palm oil is an input for manufacture of biscuits - benefit of 46/2002 available: CESTAT
By TIOL News Service
MUMBAI, MAY 21, 2016 : THIS is a Revenue appeal.
The issue involved is whether Crude Palm Kernel oil is vegetable fat and whether benefit of Notification No. 46/2002-Cus can be extended or otherwise.
Notification No. 46/2002-Cus exempts material imported into India from whole of customs duty, as well as from CVD if the same is for replenishment as an intermediate.
It is the case of the revenue that Crude Palm Kernel oil is not used as raw material, but it is an intermediate for manufacturing biscuits, hence not covered by Duty Free Replenishment Certificate (DFRC)licence.
The Commissioner (A) allowed the benefit and, therefore, the Revenue is before the CESTAT.
The AR reiterated the grounds of appeal.
The Bench observed that the lower appellate authority was correct in coming to conclusion that Crude Palm Kernel oil is covered under the duty free replenishment certificate inasmuch as the Tribunal in the case of Good Health Agro Tech Pvt. Ltd. - 2011-TIOL-350-CESTAT-BANG had considered an identical issue and extended the benefit of the Notification.
The Bench liberally extracted the order passed in Good Health Agro Tech Pvt. Ltd. (supra) and concluded that the impugned order needs to be upheld.
The Revenue appeal was rejected with consequential relief of re-validation of licence in favour of respondent.
(See 2016-TIOL-1204-CESTAT-MUM)
|