2017 (3) TMI 361

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....y 1992 and 28th May 1992 for the period from 13th August 1991 to 31st January 1992. The notices pertained to clearances of five products by the assessee, M/s Indian Oil Corporation, on which exemption under notification no. 120/84-CE and notification no. 287/86-CE dated 5th May 1986 was claimed. The original authority confirmed a total demand of Rs. 37,69,446/- under section 11A of Central Excise Act, 1944 read with rule 9(2) of Central Excise Rules, 1944. In doing so, two of the products were identified as having wrongly claimed the exemption due to 'speciality oils' and the other three as having wrongly claimed the benefit available to 'lubricating oils and greases.' 2. The impugned order has set aside the entire demand confirmed by orig....

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....decision of the Tribunal in re Hindustan Petroleum Corporation Ltd by order dated 14th September 2005, 5. Learned Authorized Representative cited the decision of the Hon'ble Supreme Court in Commissioner of Central Excise, Calcutta v. Hindustan Petroleum Corporation Ltd [2005 (189) ELT 258 (SC)] which held that '5. The Notification is undoubtedly exempting Speciality oils. There can be no dispute that even blending or compounding of one mineral oil with another mineral oil could result in manufacture of a Speciality oil. Speciality oil could also be manufactured by blending or compounding of a mineral oil with other oils or any other substance. However, the question is whether this Notification exempts all Speciality oils or only certain ....

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....facture by mixing of two mineral oils is erroneous. What this reasoning fails to notice is the words "with other oils or any other substance". On above reasoning these words become superfluous. It is settled law that an interpretation which ignores words or which renders words superfluous cannot be given. Also this reasoning ignores the fact that in Chapter 27 there are a large number of mineral oils. When mineral oils of different types are mixed they would have been compounded. It is for this reason that the proviso also provides for "blending or compounding" in respect of mineral oils falling under Chapter 27. The proviso only deals with mineral oils under Chapter 27. It yet talks of "compounding". This shows that the reasoning that "ble....