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

Purification of used oil is not manufacture for excise duty; simple removal of impurities preserves the oil's character.
Whether purification of used lubricating oil constitutes manufacture for excise duty hinges on whether the process produces a new and different article. Authorities indicate that removal of impurities or reclamation that preserves the oil's essential character, use and identity does not amount to manufacture. Note 4 covers rendering a product marketable by repacking or labelling, but purification that merely improves quality without changing character does not fall within excisable manufacture.