TaxTMI 
TaxTMI 
2013 (11) TMI 1097
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....se Rules, 2002. 2. Briefly stated, the facts of the case are that, the applicant is engaged in recovery of LPG from the natural gas found in association with crude oil. The natural gas, associated with crude oil, is separated from crude oil at the oil collecting stations for supply to the LPG recovery plant. During the process of separation/extraction of LPG (C-3 & C-4), lighter fractions of crude oil i.e. C-5 and C-6 + present in vapour form get condensed/converted into liquid form and are termed as condensate. This condensate was used, for various purposes viz. injecting back to the reservoir for dewaxing of the well, flushing of the pipelines in the oil fields, mixing with crude oil for supply to oil refinery etc. It appeared, w.e.f. De....
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....t the range between 35 to 1180C and mixture of C5, C6, C7 and C8+. The product was sought to be classified other special boiling point motor spirits under Sub-heading No.27101113 of the Central Excise Tariff Act, 198C5 and chargeable to appropriate Central Excise duty as against their classification claimed under sub-Heading No.27090000 as petroleum oils and oils obtained from bituminous minerals, crude. 4. Ld. Advocate for the applicant submitted that in their own case, Tribunal vide order No.137-139/2002C dt.03.06.2009 in case of Oil India Ltd. vs. Commr. of Central Excise, Shillong has held that Condensate formed by condensation of lighter fraction of crude oil during process of separation is held to be petroleum in natural state, crude....
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....he records. 7. The dispute in the present case relates to classification of Condensate. Revenue has sought to classify Condensate under Sub-Heading 27101113, attracting Excise Duty as against the applicant claiming classification under Sub-heading 27090000 Tariff rate under sub-heading 27090000 is nil. 8. We find that Supplementary Note to Note 4 of Chapter 27 reads as under:- (a) Motor spirit means any hydrocarbon oil (excluding crude mineral oil) which has its flash point below 250C and which either by itself or in admixture with any other substance, is suitable for use as fuel in spark ignition engines. Special boiling point spirits (tariff items 2710 11 11, 2710 11 12 and 2710 11 13 means light oils, as defined in Sub-Heading Note 4 ....