2006 (5) TMI 265

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....f Petroleum products and filed declaration for one of their product i.e. 'Liquefied Petroleum Gase - also known as PPFS' as falling under chapter heading No. 2711.19 claiming the benefit of Notification No. 3/2001, thereby paying concessional rate of duty of 8%. The appellant also in the said declaration indicated that the LPG-PPFS supplied to IPCL will be used by IPCL for manufacture of 'Propylene' and then the LPG will be returned back to refinery. Investigations were carried out against the appellant on the ground there was mis-declaration of the product as LPG due to which there was wrong availment of concessional rate of duty. A show cause notice was issued to the appellant on these grounds. The adjudicating authority came to a conclus....

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....LPG. It was her submission that the composition of the product in question plays a very important role in respect of the classification and the Chapter Heading No. 2711.12 specifically indicates 'Liquefied Propylene Gas' and the benefit of notification for concessional rate of duty has not been extended to this chapter heading. 5. We have considered the submissions made by both sides and perused the records. In order to appreciate the rival claims it is necessary to reproduce the competing entries that are: "27.11 Petroleum gases and other gaseous Hydrocarbons - Liquefied :   2711.11 - - Natural gas 16% 2711.12 - - Ethylene propylene butylenes and butadiene 16% 2711.19 - - Other 16% ....

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.... 1.86 0.54 N-PENTANE %WT 0.36 0.35 0.34 0.40 0.64 0.38 TOTAL % WT 100.00 100.00 100.00 100.00 100.00 100.00 COMPONENT 6-7-2001 5-8-2001 29-9-2001 12-10-2001 4-1-2001 PROPANE %WT 12.21 12.75 9.99 12.87 9.32 PROPYLENE % WT 43.56 36.23 29.03 35.70 25.83 ISO-BUTANE % WT 16.67 20.79 22.13 25.31 20.15 N-BUTANE % WT 4.39 5.31 5.87 3.75 7.08 BUTENE-1 %WT 5.38 5.78 9.05 8.12 8.37 ISO-BUTYLENE % WT 6.07 7.51 2.01 3.44 8.08 TRANS-BUTANE % WT 5.89 5.84 10.84 5.53 11.53 CIS-BUTENE % WT 4.59 4.74 8.92 4.12 8.24 ISO-PENTANE ....

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....on organic molecule. Chapter Note l(a), (e) & (f) thereof would be relevant and applicable. The stream butane going to CRBL and returning after striping at the CRBL premises of being the Isobutylene content. However, there is no finding arrived at so to whether the 'Isobutylene' removed is in the pure form i.e. 90% and pure which comes into existence either separately or in stream which is considered to be only transport carrier of CRBL. The condition 90% purity is prescribed by HSN Notes to classify Isobutylene under Chapter 29 and would be of persuasive value. Chapter No. l(a), (e) & (f) relevant for classification of the entity under Chapter 29 of CETA, 1985 have all to be found to be applicable. We find no evidence available to apply th....