{"id":6018,"date":"2025-09-20T17:25:37","date_gmt":"2025-09-20T11:55:37","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=6018"},"modified":"2025-09-20T17:25:37","modified_gmt":"2025-09-20T11:55:37","slug":"sc-issues-notice-against-cestat-ruling-on-crude-shea-butter-exemption","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/sc-issues-notice-against-cestat-ruling-on-crude-shea-butter-exemption","title":{"rendered":"SC Issues Notice Against CESTAT Ruling on Crude Shea Butter Exemption"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/customs\/101010000000406375\/sc-issues-notice-against-cestat-ruling-denying-exemption-on-crude-shea-butter-as-non-edible\"><span class=\"TextRun SCXW238493730 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW238493730 BCX0\">Food Fats and Fertilisers Ltd. <\/span><span class=\"NormalTextRun SCXW238493730 BCX0\">Versus<\/span><span class=\"NormalTextRun SCXW238493730 BCX0\"> Commissioner of Customs, Visakhapatnam (2025) 34 <\/span><span class=\"NormalTextRun SpellingErrorV2Themed SCXW238493730 BCX0\">Centax<\/span><span class=\"NormalTextRun SCXW238493730 BCX0\"> 151 (S.C.)\u202f<\/span><\/span><span class=\"EOP SCXW238493730 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:240,&quot;469777462&quot;:[916,1832,2748,3664,4580,5496,6412,7328,8244,9160,10076,10992,11908,12824,13740,14656],&quot;469777927&quot;:[0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0],&quot;469777928&quot;:[1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1]}\">\u00a0<\/span><\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>J.B. Pardiwala<\/strong> &amp;<strong> K.V. Viswanathan<\/strong>, JJ.<\/li>\n<li><strong>S\/Shri Rupesh Kumar<\/strong>, Sr Adv., <strong>Ms Pankhuri Shrivastava<\/strong>, <strong>Alekshendra Sharma<\/strong>, <strong>Aditya Kumar<\/strong>, Advs., <strong>Ms Neelam Sharma<\/strong>, AOR, for the Appellant<\/li>\n<\/ul>\n<h2><em style=\"font-size: 28px;\">Facts of the Case<\/em><\/h2>\n<p><span class=\"TextRun SCXW148084136 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW148084136 BCX0\">The<\/span><span class=\"NormalTextRun SCXW148084136 BCX0\"> appellant imported crude <\/span><span class=\"NormalTextRun SCXW148084136 BCX0\">shea<\/span><span class=\"NormalTextRun SCXW148084136 BCX0\"> butter under CTH 1515 90 99, claiming exemption under Sl. Nos. 33A\/33B of Notification No. 21\/2002-Cus. They contended it was of edible grade and used in manufacturing <\/span><span class=\"NormalTextRun SCXW148084136 BCX0\">shea<\/span><span class=\"NormalTextRun SCXW148084136 BCX0\"> stearin for export. Conflicting test reports were received\u2014while the Public Analyst certified it as edible fat conforming to PFA standards, the Customs Laboratory reported high Free Fatty Acid content (8.5%\u20139.5%) and declared it non-edible. The Plant Health Officer also opined that the product was not a food article. CESTAT, relying on the Customs Lab report, FSSAI notification and PHO\u2019s opinion, denied the exemption.<\/span><\/span><span class=\"EOP SCXW148084136 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559739&quot;:0,&quot;335559740&quot;:240,&quot;469777462&quot;:[916,1832,2748,3664,4580,5496,6412,7328,8244,9160,10076,10992,11908,12824,13740,14656],&quot;469777927&quot;:[0,0,0,0,0,0,0,0,0,0,0,0,0,0,0,0],&quot;469777928&quot;:[1,1,1,1,1,1,1,1,1,1,1,1,1,1,1,1]}\">\u00a0<\/span><\/p>\n<h2><em>Supreme Court Held\u00a0<\/em><\/h2>\n<p><span class=\"TextRun SCXW91311866 BCX0\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW91311866 BCX0\" data-ccp-parastyle=\"Normal (Web)\">The Supreme Court, noting the conflicting test reports and the questions of law involved, issued notice in the appeal, returnable on 9-9-2025, directing that the matter be listed at the top of the Board. The Court <\/span><span class=\"NormalTextRun SCXW91311866 BCX0\" data-ccp-parastyle=\"Normal (Web)\">permitted<\/span> <span class=\"NormalTextRun SpellingErrorV2Themed SCXW91311866 BCX0\" data-ccp-parastyle=\"Normal (Web)\">dasti<\/span><span class=\"NormalTextRun SCXW91311866 BCX0\" data-ccp-parastyle=\"Normal (Web)\"> service in addition. The <\/span><span class=\"NormalTextRun SCXW91311866 BCX0\" data-ccp-parastyle=\"Normal (Web)\">issue framed was whether crude <\/span><span class=\"NormalTextRun SCXW91311866 BCX0\" data-ccp-parastyle=\"Normal (Web)\">shea<\/span><span class=\"NormalTextRun SCXW91311866 BCX0\" data-ccp-parastyle=\"Normal (Web)\"> butter imported by the appellants would fall within the category of edible crude and thereby qualify for exemption under the said notification.<\/span><\/span><span class=\"EOP SCXW91311866 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Food Fats and Fertilisers Ltd. Versus Commissioner of Customs, Visakhapatnam&hellip;<\/p>\n","protected":false},"author":16,"featured_media":6030,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,177,47],"tags":[],"class_list":["post-6018","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customs","category-customs-news","category-custom-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SC Issues Notice Against CESTAT Ruling on Crude Shea Butter Exemption<\/title>\n<meta name=\"description\" content=\"The Supreme Court examines whether crude shea butter qualifies as edible crude for customs exemption under Notification 21\/2002-Cus, amid conflicting test reports.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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