TaxTMI 
TaxTMI 
2003 (8) TMI 397
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.... Item 11A(4) read with Notification No. 75/84-C.E., dated 1-3-1984; that during 1985-86 Tariff Item 11A read as under : "Tariff Item Description of Goods Rate of Duty 11A All products derived from refining of crude petroleum or shale (whether liquid, semi-solid or solid in form), not otherwise specified including lubricating oils and greases and waxes - (1) Mineral turpentine oil 20% ad valorem plus Rs. 400 P.M.T. (2) Waxes 20% ad valorem plus Rs. 600/- P.M.T. (3) (a) Base mineral oils (suitable for use in the manufacture of lubricating oils and greases), including mineral oils commonly known as Transformer oil base stock or Transformer oil feed stock (b) Lubricating oils (including spindle oils, flushing oils, jute batching oils and axle oil) and lubricating greases. Rs. 3,500/- P.M.T Rs. 3,500/- P.M.T (4) Others 20% ad valorem plus Rs. 2000/- P.M.T." The learned Advocate mentioned that HPS, therefore, fell under sub-item (4) of Item 11A as a residuary product and also being different from other products mentioned in sub-items ....
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....lding that HPS and RFO cannot be treated as one and the same thing as Notification No. 75/84 clearly mentions HPS separately. The learned Counsel contended that in terms of Encyclopaedia of Chemical Technology by Kirk Othmer, residual fuel oil is a product which contains any amount of residue in crude distillation, hydrocraking; that the term "domestic fuel oil", "diesel fuel oil" and "heavy fuel oil" are synonymous with residual fuel oil and these names are basically more of an indication of the uses as fuel oil; that the Petroleum Products Hand Book by VIRGIL B. Guthrie mentions as under : "Residual Fuel Oils are refinery by-products which are usually sold below the cost of the crude oil from which they are made. However, a small demand exists for better grades of these oils in the metallurgical and other industries. The common variety of residual fuel oils is a mixture of the heaviest petroleum fractions obtained from routine refinery operations, which are difficult to re-work into higher grade products with available equipment." He also referred to "The Illustrated Petroleum Reference Dictionary" according to which "Residual" means "A term used to describe oils that are "....
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.... anywhere mention that HPS and RFO are the same products; that further, the D.O. clearly mentions at the end that "if there is any difficulty in regard to any particular fraction, which is considered as not coming within the purview of 'Residual Fuel Oil', it may please be brought to our notice for taking remedial action"; that this shows that the issue was not finally decided by the Board; that moreover Notification No. 75/84 which was issued subsequent to the said D.O. mentions separately RFO and HPS and fixes different rates of duty. He finally submitted that it is settled law that interpretation of exemption Notification is to be done strictly; that it has been held in the case of Kirloskar Cummins Ltd. v. U.O.I. - 1982 (10) E.L.T. 29, that the notification has to be judged not by the object which the rule making authority has in mind but by the words which has been employed to effectuate the legislative intent; that the appellants have not been able to prove that HPS is nothing but RFO. In reply, the learned Advocate mentioned that all the invoices issued by the appellant mention RFO. 8.1 We have considered the submissions of both sides. The fact which is not in disput....
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.... 9. The Central Board of Excise & Customs expressed the same view in D.O.F. No. 189/7/83-CX. 3, dated 5-12-1983 which reads as under : "Please refer to your D.O. letter No. EX : E : 2, dated the 14th July, 1983 regarding inclusion of the term 'Heavy Petroleum Stock' in addition to 'Residual Fuel Oil' in Notification No. 160/83-C.E., dated the 24th May, 1983. Your request has been carefully considered by the Board. We are advised that the term 'Residual Fuel Oil' has been defined in the publication 'Petroleum Products Handbook' by Guthrie as topped crude petroleum or viscous residuums obtained in refinery operations. The term 'topped crude, has also been defined in the publication. The expression 'Residual Fuel Oil', therefore, is wide enough to include in its abmit all types of viscous residuums obtained after removing an appreciable quantity of the more volatile components of crude petroleum. Thus, the expression 'Residual Fuel Oil' would include residual products as long as they do not have the characteristics of products covered by Items 10 and 11 of the Central Excise Tariff. On the other hand, there is no precise definition available for 'Heavy Petroleum Stock'. It....