2017 (6) TMI 701

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....vailing the exemption by way of substantial explanation under the said notification with effect from 1.8.2005. The said notification exempts certain goods from payment of duty. The product manufactured by the appellant falls under chapter heading which does not fall in the negative list as per Notification No.50/02 and exemption is available under the said notification and the goods namely industrial fuel oil fall under chapter 27 of the Central Excise Tariff and covered under S.No.10 of annexure to the Notification and the same is liable to pay duty and request for availing the exemption under Notification No.50/03-CE was rejected vide letter dated 16.3.2007.  Therefore, various show cause notices were issued to the appellant for dema....

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....ise law. To support this contention, he relied on the CBEC circular No.83/83/94-CX dated 13.12.1994 to say that the activity of mixing of duty paid methanol to the duty paid motor spirit does not amount to manufacture as no new product emerges.   He also relied on the decision of the Honble Apex Court in the case of JG Glass Industries Ltd-1998 (97) ELT 5 (SC). 5.   He further relied on the following decisions: i.   CCE, Meerut vs. Goel Gases Pvt.Ltd-2000 (119) ELT 5 (SC) ii.   Heena Export Corporation vs. CCE, New Delhi-1995 (78) ELT A148(SC) iii.   Indrol Lubricants & Specialities Ltd vs. CCE, Calcutta-1999 (111) ELT 544 (T) iv.   State of Karnataka vs. Kothari Industrial C....

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.....50/03-CE, therefore, the appellant is required to pay duty. 8.   Heard both sides and considered the submissions. 9.   We find that initially the appellant was paying duty on industrial fuel oil and opted for exemption under Notification No.50/03-CE.  Admittedly, the item falling under chapter heading 2710 1950 of the Central Excise Tariff Act, 1985 do not qualify for exemption under Notification No.50/03, therefore, we hold that the authorities below has rightly rejected the exemption under Notification No.50/03 to the appellant. 10.   The appellant has taken the ground that the product does not amount to manufacture.  We find that the process involved mixing of furnace oil and MTO is undertaken ....