Classification of Palm Stearin - CBEC Clarifies
BOARD Circular No. 81/2002-Customs dated 03.12 2002 clarifies that ‘‘Crude Palm Stearin” should be assessed keeping in view the chemical examination of the product whether they are glycerides (ester) of fatty acid or a mixture of fatty acids. Accordingly, the goods merit classification or assessment either under CTH 1511(in case of glycerides of fatty acids) or CTH 3823 (in case of a mixture of fatty acids), as the case may be.
This clarification became redundant when Supreme Court of India in Civil Appeal No. 6979-6982 of 2009 in case of CCEC & ST, Visakhapatnam vs. JOCIL India, vide Order dated 15.12.2010 held that ‘Palm Stearin' is specifically mentioned under CTH 3823 11 and is further differentiated as “Crude”, “RBD” in sub-heading 3823 11 11 and 3823 11 12 respectively.
In view of this Apex Court judgment, it is clarified by the Board that the goods declared as “Crude Palm Stearin” shall be assessed under CTH 3823 11 11 of Customs Tariff Act, 1975.
All pending cases should be finalized accordingly. Circular No. 81/2002-Cus dated 03.12.2002 is withdrawn by the Board.
CBEC Circular No. 31/2011-Cus., Dated: July 26, 2011