TaxTMI 
TaxTMI 
2018 (3) TMI 369
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....lable only to the goods Liquefied Petroleum Gases (LPG). The goods imported by the appellant is commercial propane , commercial propane is made of only propane and not a mixture of the stipulated gas. LPG is a mixture of hydrocarbon gases i.e. propane, propylene, butane, butylenes and isobutene. Accordingly the department contended that the exemption available to LPG cannot be extended to the propane imported by the appellant. 2. Shri J.C. Patel, learned Counsel appearing on behalf of the appellant at the outset submits that this issue has attained finality by this Tribunal in the case of Commissioner of Customs (Import), Mumbai Vs. Aegis Logistics Ltd. 2014 (308) ELT 135 (Tri.-Mumbai). 3. Shri Ahibaran, learned Commissioner (A.R.) ap....
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....mbient temperature and pressure and are of petroleum origin. However, these gases get liquefied even at the normal temperature but at certain pressure. Such goods are termed as liquefied petroleum gases. Even the Tariff entry further sub-classifies into two categories, viz. liquefied and in gaseous state. Thus, if natural gas is imported or cleared in gaseous form, then it gets classified under 2711 21, but the same goods if imported or cleared in liquefied form, then these get classified under 2711 11. 9. The other important thing to be noted is the term petroleum gases is a generic term and covers a vide range of gases or mixture of such gases within its fold. For example, ethylene, propylene, butylene, butadiene, butane, propane....
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....ise and Customs Notifications and we observe that even these Notifications recognizes the fact that LPG in addition to fuel is also used for the manufacture of various items, for example, entry at S. No. 28 of Notification 4/2006 (which is under discussion) covers the entry as under :- "28. Liquefied Petroleum Gases (LPG) received by the factory from the refinery intended for use in the manufacture of Propylene or Di-butyl Para Cresol (DBPC) and returned by the factory to the refinery from where such Liquefied Petroleum Gases (LPG) were received. Explanation. - For the purposes of the exemption, the amount of Liquefied Petroleum Gases consumed in the manufacture of propylene shall be calculated by subtracting from the quan....
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....the position in respect of butane which is covered by 2711 13 00 as also by the description liquefied petroleum gases . Tariff item 2711 19 00 is a residuary item and therefore the liquefied petroleum gases which are not covered by 2711 11 00, 2711 12 00, 2711 13 00 and 2711 14 00 will get covered under the said entry. If Revenue s contention is accepted, then, only the liquefied petroleum gases falling under Heading 2711 19 00 would be chargeable to 8% duty. Such an interpretation cannot be permitted for the simple reason that other two Tariff items are mentioned in the said entry and the other two Tariff items do cover liquefied petroleum gases (LPG) . 12. From the above analysis, it is clear that the term liquefied petroleum gas....
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....ane is specifically mentioned as a type of LP gases. We also note that one of the respondents in the present case is actually using the commercial propane as a fuel in its factory. We do not consider it necessary to go into the various details provided by the respondents from the internet. Suffice to state that these details indicate propane as liquefied petroleum gas. Thus in our view, propane is considered as Liquefied Petroleum Gases (LPG) in trade or commercial understanding. 15. We have gone through the various case laws mentioned by both the Revenue and the respondents. In the present case, the Tariff and Notification understanding of the term liquefied petroleum gases, is being taken/considered rather than the pure scientifi....
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....ned earlier, the term is also used in the Tariff, the Notifications use the term for both as fuel or as input for manufacturing. The scope of the term in the Tariff is being taken for purpose of Notification. We do not consider it necessary to discuss number of other judgments quoted by the respondents or the appellant. 16. We have also gone through the Ministry s letter dated 12-8-2013 submitted by the learned Commissioner (AR) during the course of the hearing. We do not find any basis of stating that LPG is produced by mixing butane and propane in such a way that it meets the specification prescribed for LPG. Even if that is so, the proper course for the Government would have been to include such specification in the Notification....