TaxTMI 
TaxTMI 
2000 (8) TMI 911
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....uly assisted by Shri K. Chatterjee, learned Advocate, submits that the dispute involved in the present case is as regards the excisability and dutiability of 'Hot Molten Mixture of Petroleum Jelly' which comes into existence at the intermediate stage during the process of manufacture of antiseptic Boroline Cream. The Department has raised the demand on the said mixture, which was consumed by them captively in a running uninterrupted process, by classifying the same as petroleum jelly under sub-heading 2712.10 of the Central Excise Tariff. The demand has been confirmed for the period - 1-3-1986 to 29-2-1989 - and the show cause notice was raised on 19-2-1991. Subsequently, Dr. Chakraborty submits that the matter was remanded by the Tribunal ....
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.... his above submission, he strongly relies upon the Tribunal's decision in the case of Mehtachem Industries v. C.C.Ex., Rajkot reported in 2000 (116) E.L.T. 690 (T) = 1999 (32) RLT-48 (T) wherein a similar product arising during the course of manufacture of Boroquien Antiseptic Cream was before the Tribunal and it was held that the same cannot be considered as petroleum jelly to be classified under Heading 27.12. He also submits that the appellants have a good case on limitation inasmuch as the show cause notice was issued after a normal period of limitation of six months. In these circumstances, he prays for allowing the appeal. 3. Countering the arguments, Shri V.K. Chaturvedi, learned S.D.R. appearing for the Revenue reiterated th....
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....efore, he would submit that the appeal may be rejected. 4. We have considered the submissions made from both sides and have gone through the impugned Order. The process of manufacture of Boroline and emergence of the disputed white mixture are given by the appellants in the memo of appeal. The same is reproduced below for better appreciation :- (a) Liquid Paraffin (Light), Paraffin (Heavy), Hard Paraffin, Micro Crystalline Wax and Lanolin (wool-fat) are charged in a single operational process and are melted into a liquid in a melting kettle at the temperature of 90°C - 100°C and the said liquid is transferred into a mixing vessel with stirrer through a Centrifugal Pump (Step-1); ....
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....51°C and the density to be 0.8603 gm./cm3, both satisfying the conditions laid down for petroleum jelly as enumerated in the H.S.N. However, the cone penetration test mentioned therein could not be performed for want of facilities." We find that H.S.N. Explanatory Note which deal with the petroleum jelly, explains as under :- "To fall in this heading, petroleum jelly must have a congealing point, as determined by the rotating thermometer method (ASTM D 938) of not less than 30ºC, a density at 70°C of less than 0.942 g/cm, a Worked Cone Penetration at 25°C, as determined by the method, ASTM D 217 of less than 350, a Cone Penetration at 25ºC, as determined by the ASTM D 937 method of not less than 80." 6. A....
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....in, heavy liquid paraffin, hard paraffin and micro wax together act as a substitute for petroleum jelly. The question is not as to what the appellants could have used in the manufacture of the product, but as to whether the product in question, as it emerges in the appellants' factory, is liable to duty or not. The appellants have strongly contended that the white mixture in hot stage is not capable of being marketed and the same is not known as a distinct commodity in the market. On the other hand, the Commissioner has observed that white mixture is a commercially known product and is referred to as cream-base etc. He has, further, observed that the composition of the same may vary from product to product, but it is the essential base for ....