TaxTMI 
TaxTMI 
2016 (9) TMI 132
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....s viz M/s Rudraksh Petrochem Pvt. Ltd., M/s Parth Rasayan Pvt. Ltd.; and M/s Shriran Petrochem Industries and ld. DR, Sh. R. K. Manjhi for the Revenue, the respondent namely Commissioner, Central Excise, Indore. 2. The matter here concerns mainly with the classification of the item namely Residual Crude Petroleum Oil (RCPO)/ Residual Fuel Oil (RFO) / Residual Bottom Oil (RBO). The Commissioner through his respective impugned orders-in-original held the classification of the item commonly called RCPO/ RFO / and RCBO under chapter heading 27101950 of the First Schedule to the Central Excise Tariff Act, 1985. Ld. Advocates submitted that the right classification for this item is 27090000 as Petroleum Crude Oil and inter alia plead as follow....
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....tillate product but a residuary material which is a residue and crude. Such a residuary material cannot be considered as Petroleum Oils other than crude. Hence, its use a fuel cannot be a clinching factory to conclude its classification under the Heading 27.10. Reliance is placed in this context on the judgment of the Hon'ble Supreme Court in case of Hindustan Petroleum Corporation Ltd. vs. UOI 1999 (112) ELT 8 (SC.) (vii) In para 7.9 of the notice, it has been stated that as per the test report of Chief Chemical Examiner, CRCL, New Delhi the flash point of crude oil is 25 deg. C whereas the flash point of residual crude petroleum oil/ residual waste oil is 40 deg. C. which is mineral hydrocarbon oil. It has therefore been contende....
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.... which are used as lubricating oils, used as hydraulic oils, used as transformer oils, etc. are classified as waste oils. * Buyers of the subject item are using it as fuel oil in the boilers, furnace of ceramic industries and is also used in hot mix plant. 4. In case of these three appellants in addition to the issue of classification, we find that there have been some shortage/ excess of goods namely ligroin and RCPO/ RWO in case of M/s Shrirang Petro Industries; the items namely Parson and Parsol 20 in case of M/s Parth Rasayan Pvt. Ltd.; the items namely Rudosol -1 and mixed fuel oil in case of M/s Rudraksha Petrochem Pvt. Limited. In case of M/s Parth Rasayan Pvt. Limited unaccounted goods valued at Rs. 70,801/- were confisc....
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....ary note (g) above. All the pleadings of the department that literature of the assessee indicates the item as fuel; and use of the item by the buyer is as fuel cannot override the definition and meaning given to the item in the Supplementary Note (8) to Chapter Note 27. 5.2 Further, department has not made any efforts to go beyond the detailed classification 27101950 as fuel oil decided by the impugned order in favour of subject item. After having gone through the facts on record and submissions of both the sides, we find that the item is being used as a fuel but its mere use as fuel, when the parameters of the definition given in supplementary Note (g) to Chapter 27 are not fulfilled, cannot support the stand of the Revenue. Therefore, ....
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....ellants in respect of shortages/ excesses / unaccounted goods. 6.1 In case of M/s Parth Rasayan where unaccounted goods Parsol and Parsol 20 valued at Rs. 70,801/- (value wrongly mentioned in Order-in-Original, when correct value is Rs. 71,801/-) were confiscated under Rule 25 of Central Excise Rules, 2002 with an option to redeem the same on fine of Rs. 10,000/-. Ld. Advocate has pleaded that the quantity was actually the shortage and not the excess quantity and the adjudicating authority erroneously passed the order of confiscation with an option to pay redemption fine of Rs. 10,000/-. From the details given in the show cause notice in the Table drawn in its para No.2, it is clear that the appellant s pleading that it was actually shor....