Commercial propane qualifies as LPG under the exemption notification, with no end-use restriction applied.

Commercial propane imported in liquefied form falls within the expression "liquefied petroleum gases (LPG)" in Notification No. 4/2006-C.E. because the tariff scheme under Heading 2711 treats propane, butane and other liquefied petroleum gases as related sub-classifications, and the notification did not define LPG or restrict it to household fuel use. The scope of the exemption was therefore read from the tariff structure and trade understanding, supported by standard specifications showing propane as a liquefied petroleum gas. On that basis, commercial propane in liquefied form was eligible for the concessional duty rate under the notification.

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Issues: Whether commercial propane imported in liquefied form was covered by the expression "liquefied petroleum gases (LPG)" in Notification No. 4/2006-C.E. dated 1-3-2006 so as to attract the concessional rate of duty.

Analysis: The relevant tariff entries treated propane, butane and other liquefied petroleum gases as distinct sub-classifications within Heading 2711, and the notification itself covered tariff items 2711 12 00, 2711 13 00 and 2711 19 00 under the description "liquefied petroleum gases (LPG)". The expression was not separately defined in the notification, so its scope had to be understood from the tariff structure and trade understanding rather than being confined to LPG used only as household fuel. The material on record, including the tariff scheme and standard specifications, showed that propane is one of the liquefied petroleum gases and that the notification did not impose any end-use restriction.

Conclusion: Commercial propane in liquefied form was held to fall within "liquefied petroleum gases (LPG)" and was eligible for the concessional rate under the notification.

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