Duty on Used Oils Reprocessing

[Chandan Mukherjee]

Dear Sir,

We have a reprocessing unit in West Bengal. We are collecting used oil/waste oil from different sources, most of the vendors not claiming duty on scrap oils very few parties claiming duties on the same. We are reprocessing/recycling the same and sell it to market.

Now, our ce superintendent asking duty on our finished goods. He is saying that it is fallen under Note 4 of the ce tariff act. We hard that appeal is pending with Allahabad High Court regarding the same matter.

You are requested please let me inform about the matter at the earliest.

Thanking you,

Yours Faithfully

For Inspec Oils Limited

C. Mukherjee

AI Summary

Central Excise Authority Dispute: Does Reprocessing Used Oil Constitute Manufacture Under Note 4? Legal Precedents Say No. A reprocessing unit in West Bengal is facing issues with the Central Excise authority regarding the duty on reprocessed used oil. The authority claims that the process falls under Note 4 of the Central Excise Tariff Act, implying it constitutes manufacture. However, previous legal cases, such as Universal Viscose Oil Products and Mineral Oil Corporation, have established that purification of used oil does not amount to manufacturing, as it doesn't create a new product. Despite these precedents, the local authority insists on imposing duties, citing ongoing objections in the Allahabad High Court. The discussion seeks clarity on this matter.