2015 (5) TMI 58

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....al Area, Malwan Distt. Fatehpur (hereinafter referred to as the Assessee) manufacture a product called "organic composite solvent" and according to them the same is classifiable under heading 3814 of the Central Excise Tariff. The Assessee, accordingly, cleared the goods on payment of duty applicable for the product of heading 3814. The Department, however, was of the view that the goods are "other motor spirit" classifiable under sub-heading 27101119 of the Central Excise Tariff and accordingly, the same in addition to the basic excise duty of 16%, would also be liable for special excise duty at the rate of 16% ad valorem. It is on this basis that the Commissioner by a common order in original dated 31.08.2009 in respect of ten Show Cause ....

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....sessee have filed a cross objection which is registered as E/CO/2841/2012. 2. Heard both the sides. 3. Shri Bipin Garg, Advocate, the Ld. Counsel representing the Assessee, pleaded that the point of dispute in this case is classification of "organic composite solvent", that according to assesse, this product is classifiable as "organic solvents and thinners not elsewhere specified" under heading 3814 of the tariff, according to the Department, this product is classifiable as "Other Motor Spirits" under sub heading 27101119 and in addition to the basic excise duty would also attract special excise duty, at the rate of 16% ad valorem, that for being classified as other motor spirit under heading 27101119, the product must conform , to the d....

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....fied as motor spirit, that in respect of this order of the Tribunal, the Central Board of Excise and Customs vide its letter dated 11.02.2013 has intimated to the Commissioner it has been decided not to file an appeal against this order, that same view has been taken by the Tribunal in the cases of CCE Meerut -I vs Utkarsh enterprises, (final order No. 118/2010-Ex dated 23.02.2010), Jagdamba Petroleum (P) Ltd. vs. CCE Noida reported in 2004 (163) ELT 88 (Tri), a civil appeal filed by the Revenue against which, has been dismissed by the Apex Court vide judgment reported in 2007(212)ELT A112 SC], that the common ratio of all these judgment is that for classifying a product as a motor spirit, in addition to the boiling point being below 25&deg....

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....te organic solvent, not elsewhere specified" covered by heading 3814 of the Central Excise Tariff, or whether the same are classifiable as motor spirit underheading 27101119. Heading 271011 covers light oils and preparations and one variety of the fight oils is motor spirit. While heading 27101111 to 27101113 covers "special boiling point motor spirit", heading 27101119 covers "other motor spirits". The term "motor spirit" is defined in the supplementary notes to chapter 27 as "any hydro carbon oil" (excluding crude mineral oil) which has its flash point below 25°C and which either by itself or in admixture with any other substance is suitable for use as fuel in spark ignition engines. Thus, for classification as motor spirit the produc....